Guide

A Guide to Biodiversity Financing for Cities and Regions

A Guide to Biodiversity Financing for Cities and Regions

Using in-depth definitions, case studies and resources, the guide covers innovative and traditional financing instruments to support biodiversity conservation, maintenance, restoration and preservation.

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Rapid urbanization, especially in Latin America and the Caribbean, is a key driver of biodiversity loss, with 25% of species threatened. Urban areas have a critical role in reversing this trend by investing in Nature-based Infrastructure (NBI), which provides economic benefits, job creation, and climate resilience. Currently, over USD 1 trillion is lacking annually for urban investments, and the Kunming-Montreal Global Biodiversity Framework urges a substantial increase to at least $200 billion per year by 2030 to implement biodiversity strategies and action plans for sustainable, low-emission, and climate-resilient development. The Guide details the stages of the project development cycle, explaining the necessary activities undertaken in each stage. The success of mobilizing funding for biodiversity investments depends on the bankability of the project, the inclusion of relevant stakeholders, and the development of business models. This process guides LRGs through these important steps. The Guide is complemented by the“Biodiversity Finance Decision-Making Tree”, which helps local and regional governments to find the most suitable financing instrument for their project, taking into consideration the required conditions.