An Overview of Nature-Related Risks and Potential Policy Actions for Ministries of Finance: Bending The Curve of Nature Loss

The Coalition of Finance Ministers for Climate Action (June 2022)

This report covers the key findings and policy recommendations on nature-related risk for Ministries of Finance. The findings include:

  1. The materialization of nature-related risks for the economy and financial sector can have detrimental implications for governments, and MoFs in particular.
  2. Nature-related risks are not inevitable, but can be reduced by altering the economy and the financial sector’s impact on nature, where MoFs have a pivotal role.
  3. Climate change and nature loss are deeply interconnected and mutually reinforcing.
  4. A government-led nature- or climate-only approach is likely to be fiscally inefficient, socially, and environmentally ineffective, and not sufficient to reach national or global climate and nature-related targets.

The report includes recommendations for a range of policy actions MoFs can take to start to bend the curve of nature loss in the following areas:

  1. Reforming economic policy
  2. Integrating nature-smart planning and nature-based solutions into sectors
  3. Developing and implementing valuation, metrics, and decision support tools
  4. Mobilizing private finance for nature (both through greening finance and financing green).