With thanks to the members, knowledge partners and community of practice, the Taskforce and its work was drawn to a conclusion and its final recommendations were released in August 2023 at the 'Amazon Summit' in Brazil. Its inputs and community of practice continue to be active and NatureFinance is engaged and advancing and shaping these critical discussions and research.
Read more: www.naturefinance.net/making-change/nature-markets/
The 7 ambitious Taskforce recommendations can be actioned by policy makers, market actors and citizens to catalyse a global nature economy fit for the 21st century - where markets work for people and the planet.
The unprecedented shift towards these markets must be harnessed to protect nature and deliver a Just Transition to a fairer, more sustainable economy.
Action to align the international economic and financial architecture with the imperative of advancing an equitable, global nature economy.
Action to broaden the mandates of central banks and supervisors to require them to ensure that actions by financial actors, markets and systems are aligned with relevant government and international policy commitments on nature and climate
Action to align public sector financial management with international nature commitments crystallised in the Kunming-Montreal Global Biodiversity Framework.
As the world’s largest and most impactful nature market that facilitates the global trade of food, require policy makers and regulators to mandate full traceability and enhanced transparency about impacts.
Create coalitions composed of nature rich sovereign nations, Indigenous Peoples and local communities to deliver high integrity nature services at agreed prices.
Reduce the incidence and impact of nature crimes – the third largest source of illegal financial flows - by establishing a requirement for investors and financiers to demonstrate a nature-crime free value chain.
Create a universal agreement to measure the overall state of nature and ensure the data publicly available to avoid greenwashing.
In addition to the food we eat, the water we drink, and the air we breathe, nature includes all living things and the minerals under our feet. It is ever-present in the stuff of our homes and mobile phones, the movies we stream, and how we manage our health and consumption of energy.
Most economic activity undervalues nature, using it like a limitless, free resource when it is neither. This unsustainable use of nature underpins structural economic inequalities.
The shift towards pricing nature into markets could see billions of dollars mobilised for nature’s protection and a greater share of economic rewards going to nature’s stewards - but it also opens the door to risks of greenwashing and entrenchment of the extractive global economy.
Nature and the economy
Priced nature
Nature markets
Nature-positive and equitable nature markets
100% of the economy is 100% dependent on nature, but not all of nature's value is recognized in economic activity
Some of nature is priced in the economy via policies and markets, although not necessarily correctly
Nature markets are a growing set of markets where nature is explicitly valued and traded
Some, but not all nature markets are currently designed to achieve nature positive and equitable outcomes
Pricing nature across the global economy could increase the potential for nature to be protected and restored. But it also opens the door to risks of greenwashing
Nature and the economy
100% of the economy is 100% dependent on nature, but not all of nature's value is recognized in economic activity
Some of nature is priced in the economy via policies and markets, although not necessarily correctly
Nature markets are a growing set of markets where nature is explicitly valued and traded
Some, but not all nature markets are currently designed to achieve nature positive and equitable outcomes
Pricing nature across the global economy could increase the potential for nature to be protected and restored. But it also opens the door to risks of greenwashing
Nature and the economy
100% of the economy is 100% dependent on nature, but not all of nature's value is recognized in economic activity
Some of nature is priced in the economy via policies and markets, although not necessarily correctly
Nature markets are a growing set of markets where nature is explicitly valued and traded
Some, but not all nature markets are currently designed to achieve nature positive and equitable outcomes
Making nature count is essential to achieving a more sustainable and equitable global economy.
Pricing nature across the global economy could increase the potential for nature to be protected and restored. But it also opens the door to risks of greenwashing
One sentence definition of what is a nature market. Making nature count is essential to achieving a more sustainable and equitable global economy.
Nature and the economy
Priced nature
Nature markets
Nature-positive and equitable nature markets
100% of the economy is 100% dependent on nature, but not all of nature's value is recognized in economic activity
Some of nature is priced in the economy via policies and markets, although not necessarily correctly
Nature markets are a growing set of markets where nature is explicitly valued and traded
Some, but not all nature markets are currently designed to achieve nature positive and equitable outcomes
A nature market explicitly values and trades nature.
Nature credit markets, especially focused on carbon markets and emerging biodiversity credit markets. They have a current combined annual value of less than US$5 billion.
Illegal nature markets, covering the trading of the results of nature crimes. They are the third largest source of illegal financial flows estimated at up to US$1.5 trillion-2 trillion.
Soft commodity markets, the largest and arguably the most important set of nature markets, trading the world's food supply. The global food market is valued at upwards of US$4 trillion annually.
Financial markets, the lifeblood of the global economy – the way the global financial system deals with nature determines how aligned the global economy is with nature positive outcomes.
"Nature markets cannot be addressed piecemeal, we need a complete system reset to deliver an equitable, nature positive economy in service of people, planet and prosperity”
"It is fundamental that Indigenous Peoples are in the driving seat of designing and governing nature markets. Without nature there is no life on our planet nor a sustainable economy”
“We are entering into an era of political and legal battles of jurisdictions, with nature and climate as the centre of gravity, resulting in new forms of trade and protectionisms becoming viable again.”
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