Over half the world’s GDP – $44 trillion – is moderately or highly dependent on nature and its services. Without rapid and substantial shifts in capital flows, the loss of ecosystem services and biodiversity will be irreversible, potentially resulting in a destabilisation of our financial system and devastating impacts on the global economy and on humanity. To accelerate this shift, a conducive framework is needed. Sustainable finance taxonomies emerged as one critical tool to provide a framework that defines “what counts as green or environmentally harmful finance”, classifying investments based on environmental performance criteria. Now, for them to inform global financial markets and to facilitate investment in the “green transformation”, national policy action, international alignment and a strong forward-looking perspective of biodiversity finance taxonomies are crucial.
