Nature restoration needs attention and funding: discussion on SERE conference led by EIC

Image: KIKi töötaja Eva-Ingrid Rõõm

Our Chief Executive Officer, Andrus Treier moderated a panel discussion "Climate and Biodiversity Finance Strategies & Practices" at the 14th European Conference on Ecological Restoration (SERE).  

Main discussion points from the panel: Biodiversity plays a huge role, but there is a financing gap to addressed!

• Half of the worlds GDP depends on nature and biodiversity, but it is hard to price and quantify its economic value.
• Current funding is only a third of the levels needed to reach climate, biodiversity and land degradation targets by 2030. 
• There is a huge funding need to bridge the current annual $700 billion financing gap for biodiversity on a global level.
• Majority of ecosystem restoration funding comes from the public sector. In Europe EU LIFE Programme alone provides funding to 76% of the projects for restoration. 
• It remains challenging to include value of nature into current economic incentives to attract private funding despite the estimations that for every dollar spent on ecosystem restoration derives $7 to $110 from ecosystem services gained. 
• Reporting requirements like SFDR, CSDR, and EU taxonomy and DNSH principles will have a gradually positive effect, but the recognition of the importance of halting biodiversity loss and achieving a real effect on funding streams will take time.
• Considering the urgency, more strict, mandatory regulations on biodiversity could be needed- similar to EU regulation on commodities and products, which requires checks on the origin and production conditions and has significantly changed companies' purchasing behavior.
• Still, novel financing models and blended finance are recognised as important instruments: strategic use of development finance and philanthropic funds can mobilize private capital flows.
• Search for innovative economic models continues, headed by international organisations such as UN, World Banks, European Commission, and others. 

We would like to thank the moderator and panelists for their interesting and, as always, all too brief discussion: Andrus Treier, Merit Valdsalu, Maja Mikosińska, Rodrigo Cassola and Kadri Vunder Fontana!