A new generation of markets is emerging that generates nature-specific revenue streams. While it is good that nature’s value is being promoted by such developments, there are growing concerns as to their negative impacts. The unchecked monetarisation of nature could lead to its further depletion and damage. For example, unintended consequences could arise from an over-emphasis on markets predicated on one measurable metric (say, carbon reduction or offsets) while missing and negatively impacting other aspects of biodiversity. Nature markets could be responsible for yet another historic round of inequitable outcomes, and could contribute to worsening climate change. The Taskforce on Nature Markets has been established to shape these new nature markets in a way that protects and regenerates nature, ensures prosperity of nature's stewards - local and indigenous people, and contributes to meeting the climate goals.
Nature markets come in many shapes and forms. We propose a three-way classification of nature markets that are a work-in-progress and likely to evolve over time. - Intrinsic nature markets concern first and foremost the trade of nature itself. These markets include embedded nature markets eg. the nature value of tourism. - Offset nature markets concern investments and/or trade in aspects of nature to offset a negative impact elsewhere. These markets include carbon-linked nature markets. - Derivative nature markets concern markets that trade instruments that reflect the value of nature embodied in the underlying economic assets and enterprises. Examples are financial instruments and markets that consider nature-related risks.Read more about the Nature Markets in the 'What are Nature Markets' part of the Future of Nature Markets white paper.
The ambition of the Taskforce on Nature Markets is to establish the framework for building principles-based nature markets. The programme of work will seek to map existing and emerging approaches and experience, build awareness of opportunities and risks, grow a community of practitioners, encourage innovations and innovative people, advance supportive governance arrangements and create pathfinder initiatives to scale the implementation of recommended approaches and prototypes. Effectively implementing such a work programme would enable the Taskforce to contribute to the development of nature markets fit for the 21st century and beyond.
The Taskforce on Nature Markets is guided by leaders and knowledge partners drawn from policy, legal and governance, academia, market, technology, civil society and indigenous communities.You can find more information about the sectors and communities involved with the TNM on the Taskforce Members and Knowledge Partners pages.
The Taskforce work serves two principles: a nature positive outcome and supporting shared and sustainable prosperity for the stewards of nature including local and indigenous communities. In addition, we are committed to transparency, accountability, inclusion and impact. The process will aim to deliver policy and market interventions with solid governance for both public and private actors. We believe in empowered citizens and communities, and markets that can place nature and equity at the core of our economic activity.
The goal of the Taskforce is to design solutions and generate nature positive and socially equitable impact. Unchecked monetarisation of nature could lead to ecosystem destruction and inequality. To avoid nature markets being responsible for yet another historic round of inequitable outcomes, we need to ensure the nature market design and implementation is properly regulated, in full compliance with legal frameworks, and in full consultation with all stakeholders including the ultimate stewards of nature - local communities and indigenous populations.
The main goal of the Taskforce is to inspire, design and support governance frameworks to develop nature markets that can be nature positive and deliver equitable outcomes. At the same time, the Taskforce work plan will denounce and contribute to halting nature destructive market practices. After all, markets and the economy are 100% dependent on nature. That is, there is no life or economy without nature.We believe the Taskforce can make a meaningful contribution, working with many partners and allies, to find ways of activating these communities towards collaborative, ambitious actions to reshape markets that will promote a thriving nature, and a sustainable and just society.
The interlocutors of the Taskforce are its members. They represent a diverse scope of stakeholders from finance to academia, markets and society (see members). The Taskforce is supported by a secretariat led by NatureFinance (see more). In addition, the Taskforce also counts on knowledge partners (see list) and experts to design and implement its work plan.
The Taskforce will contribute to broader ongoing efforts to make nature count in transitioning to a nature positive, net zero economy, including initiatives at the nature finance nexus such as the Taskforce on Nature-related Financial Disclosures’ (TNFD) work in developing policy-focused carbon markets building on foundations laid by the Taskforce on Scaling Voluntary Carbon Markets, among others, and a host of market-driven, policy and regulatory developments. The Taskforce provides a complementary focus on the risks and potential of a new generation of nature markets. Its work will build awareness of nature markets, develop communities of practice, innovations and a roadmap of recommendations as well as create exemplary pathfinder initiatives.Our approach is to support a diverse and multi-stakeholder Taskforce process oriented towards achieving impact. The group, along with a number of knowledge partners and experts, will explore opportunities to deliver nature positive and equitable outcomes. The invitation is to work on a wide scope of areas such as Governance, Trade, Investment, Legal, Digital, Empowered Citizens and Communities.We believe this contribution could bring new ideas and insights to the active and vivid debate. We believe the work on nature markets could provide opportunities to build new lines of work with great existing partner organisations in the nature-finance space, as well as develop original projects with new players from the technology, governance, legal, human rights and indigenous fields.
The task force aims to engage with society at large. However, we have specific audiences that are key to implementations of our work plan. That is Governments, Civil Society organisations (climate, nature, social), Private Sector, academia, international financial institutions (IMF, World Bank, Development Banks), regulatory bodies (BIS, ECB, and others). We also seek strong collaboration with existing impactful initiatives such as TNFD, TCFD, TVCI.
Send us additional questions to ceandra.faria@f4b-initiative.net and we will add them, with a response, to this page.
