Nov. 3rd, I dialed in to a BIOFIN (Biodiversity Finance) meeting held in Kunming, initiated by the Yunnan Branch of the People’s Bank of China. About 100 finance policymakers (mostly provincial and municipal) attended. I shared two opinions:
1, Financial institutions (FIs) and conservation organizations should collaborate.
1) Biodiversity finance is too complicated to be carried out by financial institutions alone.
2) Conservation organizations need to leverage private investment to improve their conservation efforts.
3) There is sometimes overlap between FIs and conservation organizations, like the Asian elephant in Yunnan.
4) I suggest establishing a two-way voluntary working group among FIs and organizations. i.e., FIs can voluntarily consult the group, and conservation organizations can voluntarily answer the questions.
I imagine such a group can facilitate dealmaking so neither side misses an opportunity.
2, Issuing a BIOFIN loan is now the start of communication, instead of a conclusion.
1) Both blue finance and BIOFIN used to have a disadvantage compared with conventional green finance, since there is no such “currency” as carbon. BIOFIN, by nature, should encourage diversity, instead of unity.
2) The new EU directive against greenwashing will ask corporations to provide evidence for any kind of green claims.
3) This signifies a global trend of greater necessity to explain the real impact on nature in detail.
4) Financial institutions should regard their loan issuance as a start, instead of a conclusion, and encourage the beneficiaries to explain their stories to both consumers and FIs.