Nature Positive Financing the Tranisition in Cities

Units in $, in 2023 Level of finance 0-280 million 280-560 million 560-840 million 840 million-1.12 billion 1.12-1.4 billion9 projects $1.2 billionAsia Europe 12 projects $1.3 billion 20 projects $0.6 billionSouth America16 projects $0.38 billionAfrica6 projects $0.6 billionNorth AmericaMDB urban nature finance investments by country, 2023 FIGURE 6 Nature-related investments are often segregated in multi-sectoral expenditures. Moving towards greater integration and accounting for the interconnections among investment decisions and the impact on nature is fundamental. To create a sizeable shift towards prioritizing nature within urban infrastructure development, funding projects that generate ecological and social value need to be brought to the foreground. This shift can be incentivized by: –Introducing policies and incentives for investments that bring long-term environmental outcomes and promote economic growth by embedding nature in cities. –Modifying existing evaluative processes to incorporate nature and biodiversity considerations. Changing the volume of funding that feeds into nature is insufficient for the purpose of galvanizing a transition towards a nature-positive society. Understanding the nature considerations used by financial institutions across all investment diligence processes and project assessments can help reshape investment pipelines. MDBs have taken the first step towards integrating nature into project assessment processes, by incorporating nature-related lending terms and eligibility criteria into their due diligence processes.3.4 MDBs’ progress in mainstreaming natureSource: World Economic Forum analysis of publically available MDB project data from: Asian Infrastructure Investment Bank (AIIB); Asian Development Bank (ADB), Inter-American Development Bank (IDB), African Development Bank (AfDB), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), World Bank Group (WBG). Nature Positive: Financing the Transition in Cities 21