OMFIF

January 18, 2022

Looking ahead in 2022, we can be sure that the sustainability themes of last year will continue to gain prominence in the discussions surrounding the role of the finance sector. Yet after a year of pledges, 2022 must be a year of action.

In particular, there are growing expectations for financial institutions to assess and improve their impact on systemic issues such as climate change and social justice, with regulators watching closely to ensure they are walking the walk. The sector is expected to consider how capital allocation impacts the transition, whether providing funding to new climate solutions or withdrawing capital from harmful activities.

Furthermore, pressure is mounting on investors to responsibly steward the assets they invest in. This means not just factoring environmental, social and governance issues into investment decisions, but engaging with investees to support and drive them towards a more sustainable footing. Advocacy with policy-makers is also key in shaping a system that operates more effectively in the interests of end-investors, society and the environment.

Read More

Reuters

January 11, 2021
A global fund launched on Tuesday aims to boost climate financing to indigenous communities to help them secure land rights and preserve forested areas from the Congo Basin to the Andes, the initiative's backers said.

Governments, philanthropists and companies are expected to contribute to the Community Land Rights and Conservation Finance Initiative (CLARIFI), which will distribute funding among groups working to conserve forests and other ecosystems on the ground.

Over the last decade, less than 1% of international climate finance has gone to indigenous and local communities to manage forests that absorb planet-heating carbon emissions and are rich in biodiversity, but the new fund hopes to change that.

"For too long indigenous peoples and local communities have received shockingly little climate funding," said Stanley Kimaren ole Riamit, founder-director of Kenyan group Indigenous Livelihoods Enhancement Partners and a CLARIFI steering committee member. The fund will act as the "missing link" between donors that want to curb climate change and conserve biodiversity, and forest groups with the skills to do that, said Solange Bandiaky-Badji, coordinator of the Rights and Resources Initiative (RRI), an NGO which is leading CLARIFI with the Campaign for Nature group.

Read More

Campaign for Nature

January 11, 2022
As the role played by Indigenous Peoples and local communities in safeguarding the planet gains long-due recognition by global climate and conservation initiatives, their representatives and allies have launched a new mechanism to finance locally-led efforts with full respect for the rights of Indigenous Peoples and local communities.

The Community Land Rights and Conservation Finance Initiative (CLARIFI), led by the Rights and Resources Initiative (RRI) and Campaign for Nature (C4N), will mobilize and strategically deploy public and private funds to scale up the legal recognition of Indigenous Peoples’, Afro-descendant Peoples’, and local communities’ rights, as well as their efforts to strengthen their conservation of natural resources, traditional livelihoods, and gender justice.

About 1.8 billion Indigenous Peoples, Afro-descendant Peoples, and local communities claim, inhabit and steward the earth’s most critical ecosystems, including its forests. Securing their rights and following their guidance is a powerful bottom-up opportunity to address the catastrophic threats facing the planet. For example, RRI estimates that 33% of the Earth’s tropical forest carbon is at risk without recognizing community rights to their lands. Securing these rights will avoid 1.1 to 7.4 GtC02e of emissions.

Read More

Brookings

December 15, 2021
In this fifth interview of the “17 Rooms” podcast, Rosina Bierbaum and Richard Florizone discuss near-term opportunities and challenges for scaling nature-based solutions. Bierbaum, professor at University of Maryland and University of Michigan, and Florizone, president at International Institute for Sustainable Development, moderated Room 15 focused on Sustainable Development Goal number 15—on life on land—during the 2021 17 Rooms flagship process.

17 Rooms” is a podcast about actions, insights, and community for the Sustainable Development Goals and the people driving them. The podcast is co-hosted by John McArthur—senior fellow and director of the Center for Sustainable Development at The Brookings Institution, and Zia Khan—senior vice president for innovation at The Rockefeller Foundation.

Read More

PR Newswire

December 6, 2021
The Bezos Earth Fund announced it awarded 44 grants totaling $443 million to organizations focused on climate justice, nature conservation and restoration, and tracking critical climate goals. The grants include $130 million to advance the Justice40 initiative in the U.S.; $261 million to further the 30x30 initiative to protect 30% of land and sea by 2030, with a focus on the Congo Basin and Tropical Andes; and $51 million to support land restoration in the U.S. and Africa. These grants are part of the Bezos Earth Fund's $10 billion commitment to fight climate change, protect and restore nature, and advance environmental justice and economic opportunity.

"The goal of the Bezos Earth Fund is to support change agents who are seizing the challenges that this decisive decade presents," said Andrew Steer, President and CEO of the Bezos Earth Fund. "Through these grants, we are advancing climate justice and the protection of nature, two areas that demand stronger action."

Read More

Responsible Investor

December 3, 2021
The dust may have settled on COP26, but a different – and potentially less disappointing - Conference of the Parties in on the horizon, and it’s one that investors should be watching closely.

COP15 is aspiring to do for biodiversity what COP21 did for climate change. Where COP21 was the birthplace of the Paris Agreement, the second leg of COP15 in May 2022 hopes to sign off on the Post-2020 Global Biodiversity Framework - an international agreement on how we can “live in harmony with nature” by 2050.  

It could be argued that regulation is steering the agenda for climate finance, but when it comes to biodiversity investors are moving fast to make sure they stay ahead of the rulemakers. Over the past two weeks alone, there have been developments on all three of the core components needed to build a sustainability market: committed assets, disclosure guidelines and new financial products.  

On Tuesday, nine more investors - including pension funds KLP, PensionDanmark and ERAFP - signed up to the Finance for Biodiversity Pledge. The pledge, which now has 84 backers, commits institutions to collaborating, engaging, setting targets and reporting on biodiversity by 2025.

Read More

Global Citizen

December 2, 2021
Conservation is about protecting that which sustains life on Earth — the rivers that flow with fresh water, the soil rooting crops in place, the forests and marinescapes that release oxygen.

Framed in this way, conservation seems like an undertaking that would be universally supported. 

But conservationists face countless challenges, from the industrial forces invested in exploiting natural resources and polluting ecosystems to a general lack of funding and government support. Efforts to conserve an environment have long been framed by opponents as a threat to jobs and community well-being — as if any jobs or well-being would exist without a functioning environment.

This opposition appears to be fading as the climate and biodiversity crisis brings increasing devastation. Organizations are receiving waves of funding, and the voices of Indigenous people, who have long advocated for reciprocity with nature, are being elevated. The United Nations has deemed now until 2030 to be part of the Decade on Restoration, a globally coordinated effort to heal the planet. An increasing number of countries have pledged to protect 30% of land and marine spaces by 2030, and some corporations are beginning to transform their supply chains and operations.

Read More

World Economic Forum

December 2, 2021
The conservation movement, since its origins in the 19th century, has primarily relied on public funding and philanthropic contributions to achieve its ends. The Global Canopy Programme estimates that the total annual expenditure on conservation to date has been $50 billion, of which more than 80% was from governmental and philanthropic sources. Ecosystem Marketplace similarly estimates the annual flows of private investment dollars into conservation in the low billions of dollars, with the bulk of these funds going to sustainable food and fibre rather than habitat conservation.

In November 2021 at COP26, a collective $12 billion for forest-related climate finance between 2021-2025 was announced with the support of 11 nations. Yet, all these expenditures lag significantly behind the annual expenditures needed to preserve the planet’s biodiversity, estimated by Credit Suisse, McKinsey & Co and the World Wildlife Fund to be between $300 and $400 billion. Without private investment dollars, this shortfall is likely to persist indefinitely.

Read More

ENDS Report

November 8, 2021
In a conversation with fellow economist Lord Stern at COP26, Sir Partha Dasgupta said that a ‘bold and imaginative’ response is needed to provide a financial incentive to protect globally valuable ecosystems.

“Rainforests are a global public good… and yet they are in national jurisdictions,” said Dasgupta, the author of a review of the economics of biodiversity commissioned by the Treasury. But the incentive that they have to protect such habitats is less than their value for the biosphere as a whole, posing an economic dilemma. There is a similar problem with the deep ocean, too: “nobody has to pay for it” when extracting resources such as fish or minerals, the professor said.

So a new body to protect global public goods, akin to the International Monetary Fund or World Bank but operating under the United Nations, should be established, he argued. They could charge for access, providing funding for the maintenance of ecosystem services.

A good deal of negotiation would be needed to set it up, of course – “but I think we should not fear that”.

Read More

Yahoo!

November 6, 2021
Climate change and biodiversity loss are intrinsically connected, which is why a coordinated approach to tackle them both is essential. Nature-based solutions, such as conserving carbon-rich natural areas and restoring wetlands, can help countries tackle both these challenges.

To address these interconnected crises, Canada will allocate at least 20 percent of its $5.3 billion climate finance commitment to nature-based climate solutions with biodiversity co–benefits in developing countries over the next five years. This represents more than CA$1 billion. Earlier this week, the Prime Minister announced at COP26 that Canada would provide $15 million in support for the Ocean Risk and Resilience Action Alliance and the Global Fund for Coral Reefs. This funding will help developing countries build domestic capacity to take climate action, build resilience, and advance adaptation efforts while also increasing biodiversity.

As part of the High Ambition Coalition for Nature and People and the Global Ocean Alliance, Canada is leading the way to build support for an international target to protect 30 percent of our lands and oceans by 2030.

Read More

The Independent - OpEd

November 3, 2021
Reversing nature loss by 2030, while also halving greenhouse gas emissions this decade, is critical to avoid climate catastrophe. Nature can contribute up to a third of the climate action needed over the next decade, along with measurable benefits for biodiversity and people.

COP26 is the biggest moment for forests and nature since the Paris Agreement in 2015. Glasgow is producing the largest ever financial incentives for protecting forests, with unprecedented commitments from donor nations, investors and companies. 

Yesterday, more than 30 leading financial institutions, collectively with over US$ 8.7 trillion in assets under management, committed to tackle agricultural commodity-driven deforestation as part of broader efforts to drive the global shift towards sustainable production and nature-based solutions.

On top of that, more than 100 government leaders representing over 85% of the world’s forests committed to halt and reverse deforestation and land degradation by 2030, a pledge that was backed by $12 billions of public fund and more than $7 billion of private commitments, including exciting initiatives like the LEAF Coalition, the Natural Capital Investment Alliance and the Finance for the Amazon, Cerrado and Chaco (IFACC) initiative.

Read More

New York Times

November 2, 2021
In a sweeping accord aimed at protecting the world’s forests, which are crucial to absorbing carbon dioxide and slowing the rise in global warming, leaders of more than 100 countries gathered in Glasgow vowed on Tuesday to end deforestation by 2030.

President Biden said the United States would contribute billions to the global effort to protect the ecosystems that are vital for cleaning the air we breathe and the water we drink, and keeping the Earth’s climate in balance.

The pact — which also includes countries such as Brazil, Russia and China — encompasses about 85 percent of the world’s forests, officials said. It is one of the first major accords to emerge from the United Nations climate summit known as COP26, which is seen as a crucial moment in efforts to address climate change.
“These great teeming ecosystems — these cathedrals of nature,” Prime Minister Boris Johnson of Britain said in announcing the agreement, “are the lungs of our planet.”

President Biden said he would work with Congress to deploy up to $9 billion to the global effort through 2030. Additionally, governments committed $12 billion through 2025, and private companies pledged $7 billion to protect and restore forests in a variety of ways, including $1.7 billion for Indigenous peoples. More than 30 financial institutions also vowed to stop investing in companies responsible for deforestation.

Read More

New York Times

November 2, 2021
Jeff Bezos, one of the richest humans on the planet, and who started his financial empire by selling books online, pledged $2 billion to restoring natural habitats and transforming food systems at the climate summit in Glasgow on Tuesday.

Speaking at a conference where President Biden and other leaders announced a global pact to end deforestation by 2030, Mr. Bezos said that private industry must play a central role in the campaign.

“Amazon aims to power all its operations by renewable energies by 2025,” he said, restating his goal for the company to be carbon-neutral by 2040.

That will be a sizable challenge.

Amazon said, for example, that the company’s emissions from indirect sources had increased 15 percent last year over 2019. The company has pointed out that when its emissions are measured relative to its booming sales, its carbon footprint has been decreasing. But some climate experts say this calculation, called carbon intensity, obscures that the company is still generating an increasing amount of carbon.

Read More

Ford Foundation

November 1, 2021
The UK, Norway, Germany, the US, and the Netherlands, in partnership with 17 funders, pledged today to invest US$1.7 billion to help Indigenous and local communities protect the biodiverse tropical forests that are vital to protecting the planet from climate change, biodiversity loss, and pandemic risk, according to an announcement made today at a high-level World Leaders Summit at COP26.

“We are demonstrating our commitment today by announcing an initial, collective pledge of $1.7 billion of financing, from 2021 to 2025, to support the advancement of Indigenous Peoples’ and local communities’ forest tenure rights and greater recognition and rewards for their role as guardians of forests and nature,” says a statement released today by the donors. “We call on other donors to significantly increase their support to this important agenda.”

Read More

Bloomberg

November 1, 2021
One hundred countries, representing 85% of the world’s forests, have given themselves nine years to halt and reverse deforestation, in a major new commitment at global climate change talks on Tuesday.

Brazil, Russia, Canada, Colombia and Indonesia will be among the nations committing to halt and reverse forest loss and land degradation by 2030 at the third day of COP26 in Glasgow, Scotland, in an initiative spearheaded by the conference host, the U.K.

The inclusion of Brazil, home to the world’s largest tropical rainforest, is crucial to the initiative and comes amid a turnaround in the country’s ambitions to reduce emissions and tackle deforestation. Across the world as a whole, an area of forest the size of 27 soccer pitches is lost every minute, according to the U.K.

Read More