Nature Positive Financing the Tranisition in Cities

Units in $, billions Baseline (commitment in 2019)WBG evolution (conservative)WBG evolution (optimistic)MDB reform (conservative)WBG reform (optimistic) World Bank Group Other MDBs All major MDBs78130135+4%+12%+23%+31% 145160170 78 5878 6753Scenarios of annual MDB reform gains FIGURE 3 Source: Organisation for Economic Co-operation and Development (OECD). (2024). Multilateral Development Finance 2024. The MDB common principles for tracking nature- positive finance is a valuable attempt to facilitate comparability across MDBs’ respective screening and tracking processes. The intention of these principles is to set a higher standard for urban nature finance, and to capture those MDB investments that make a demonstrable positive contribution (directly and/ or through co-benefits) to putting nature on the path to recovery as part of implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF). Despite recent progress, tracking current expenditures and financial contributions to nature- positive outcomes remains a central challenge due to several factors such as: –Limited standardization of nature definitions and tracking metrics. There is no universal definition or standardized framework for what constitutes nature finance or nature-positive investments. This lack of clarity makes it difficult to consistently categorize and measure investments that support nature across different sectors.  –Diverse and complex reporting standards and disclosure requirements. Nature finance can come from various sources – public sector, private sector, philanthropic organizations and international funds – each with different reporting standards, priorities and methodologies. Without transparent and detailed reporting, it becomes challenging to assess the true extent of nature finance. This diversity complicates the tracking and aggregation of financial flows in the global economy. –Overlap of nature agendas with broader environmental investment categories. Nature finance often intersects with broader categories like climate finance, sustainable development or corporate social responsibility investments. Distinguishing funds that specifically target nature-based solutions can be difficult when investments serve multiple purposes. –Fragmented data and reporting systems. Financial flows to nature are tracked by numerous organizations and institutions, each using different methodologies and reporting systems. This fragmentation makes it hard to compile comprehensive and comparable data.3.3 State of MDB urban nature finance $280 billion in economic losses across the globe in 2023 due to natural catastrophes. Nature Positive: Financing the Transition in Cities 18