With an estimated USD 700 billion needed annually to protect and restore nature and over half of global economic value dependent on natural systems, closing the nature finance gap represents both a major challenge and opportunity for the financial sector. Banks, insurers, and investors can reduce material risks, strengthen sustainability strategies, and unlock investable projects by acting on nature. UNEP FI supports its members in addressing nature-related risks and opportunities as a key dimension of sustainable finance, particularly as 2026 promises pivotal moments for nature conservation and restoration.
Momentum is expected to build toward COP17 of the Convention on Biological Diversity (CBD) in October 2026 in Yerevan, Armenia, where finance will be central to delivering the Kunming–Montreal Global Biodiversity Framework (GBF) goals. UNEP FI will host Finance Day at COP17, providing a platform for aligning financial flows with National Biodiversity Strategies and Action Plans, strengthening public–private collaboration, and translating global commitments into practical, bankable action.
Progress is also anticipated in financing oceans and forests through intergovernmental events such as the UN Forum on Forests and the UN Water Conference. Initiatives like the Tropical Forests Forever Facility and the One Ocean Finance Facility are expected to channel public and private capital toward ecosystem restoration, while the recent BBNJ Agreement establishes a governance framework for ocean protection. Complementary instruments, including blue bonds guided by UNEP FI and the Ocean Investment Protocol, are helping financial institutions and policymakers create credible pipelines for sustainable ocean and forest investments.
2026 is also pivotal for embedding equity into nature finance. The recognition of Indigenous Peoples and Local Communities (IPs and LCs) as key stakeholders is growing, exemplified by permanent groups under the CBD and dedicated funding mechanisms like the Cali Fund. Financial institutions are encouraged to operationalize free, prior, and informed consent, ensure fair benefit-sharing, and develop long-term partnerships with IPs and LCs to integrate social equity into investment strategies. UNEP FI continues to convene dialogues and promote inclusive investment practices to ensure people-centered approaches in nature-related finance.
Nature-related financial action is moving from emerging risk to mainstream practice. Biodiversity loss is increasingly recognized as a macroeconomic, financial stability, and national security concern, prompting proactive integration into risk management, governance, and strategy. The rapid adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) framework by over 620 organizations, alongside nature-linked bond initiatives by banks such as Lloyds and Davivienda, demonstrates this shift. UNEP FI plans continued capacity-building, peer exchange, and tools like the Nature Journey to support financial institutions in embedding nature considerations across decision-making processes.
Finally, emerging areas such as fungal ecosystems highlight the need for holistic, systems-based approaches to nature finance. Fungi underpin key natural processes that support agriculture, forestry, water systems, and infrastructure, offering previously overlooked opportunities for risk assessment and investment. UNEP FI and partners are promoting the integration of fungal ecosystem indicators into financial analysis to strengthen the links between natural and financial systems, close the biodiversity finance gap, and redirect capital toward sustainable pathways.
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