Mobilising Finance for Nature and Biodiversity

September 8, 2025

The Policy Liaison Group’s roundtable examined the growing role of private finance in supporting nature recovery and biodiversity restoration across the UK. The discussion explored the Kunming–Montreal Global Biodiversity Framework as well as the development of new biodiversity and transition planning policies, and looked at how governments, investors and businesses can work together to channel capital towards nature-positive outcomes. Participants also considered the challenges associated with valuing biodiversity, creating investable opportunities and establishing credible market frameworks.

Key contributors:

  • Karen Ellis of WWF
  • Jonathan Ho of the United Nations Principles for Responsible Investment (UNPRI).

Summary

Participants highlighted that biodiversity loss presents a material economic risk, with the degradation of ecosystems threatening long-term resilience across sectors ranging from agriculture and energy to infrastructure and insurance. Discussion focused on the need for clearer sector-specific transition pathways to help businesses understand their role in meeting national environmental targets and to provide investors with greater certainty over future direction. The conversation also examined the limitations of existing market mechanisms, noting that nature recovery often lacks clear revenue streams and therefore requires a combination of public policy, blended finance and innovative funding models to attract private capital. Participants further emphasised the importance of high-integrity biodiversity and carbon markets, stronger local delivery mechanisms and proportionate disclosure requirements that link environmental impacts more directly to financial outcomes. Panellists agreed that restoring nature should be viewed not simply as an environmental objective, but as an essential component of long-term economic resilience and sustainable growth.

Recommendations

  • Integrate nature into financial regulation. Nature should be embedded in fiduciary duty and investment decisions, framing nature risks as asset resilience and long-term value. 
  • Phase in disclosure and due diligence. Introduce requirements gradually to ease burdens, linking nature-related risks to financial materiality.
  • Collaborate on sectoral transition pathways. Work with businesses to define milestones and align corporate plans with national climate and biodiversity targets. 
  • Strengthen biodiversity and carbon markets through robust integrity frameworks and clear links to national and local priorities.
  • Create local biodiversity funds. Channel contributions from the local business community, giving SMEs and councils straightforward ways to back projects with measurable outcomes. 
  • Prioritise food sector resilience. Introduce stress testing and other measures to address this strategic sector’s high exposure to nature-related risks.