Economic activities rely heavily on functions and services provided by biodiversity and ecosystem, of which loss and degradation are among the top five risks faced by the whole society, potentially triggering more financial risks. This issue has raised awareness of central banks, regulators, financial and academic institutions in recent years. The NbS Center is dedicated to conducting cutting-edge research and innovative practices in providing financial support to biodiversity conservation and insights for decision-makers.
Blue economy, as a market-based solution to ocean crisis, has become a global focus. It aims to stimulate economic growth, improve livelihoods and create employment, while safeguarding the well-being of marine ecosystems. Blue finance seeks to attract private capital into sustainable marine sectors and environment protection, which in turn contributes to the blue economy. Currently, the NbS Center is conducting research on blue financial standards and products, trying to implement the blue finance practices in collaboration with key provinces, cities, and their local financial institutions.
The green and low-carbon transition of agriculture, forestry and husbandry proposes an effective strategy to address environmental challenges, such as climate change and biodiversity loss. Accelerating the sustainable transition of its production and operation modes can significantly reduce the impact of conventional practices on natural systems, making the whole industry more resilient against climate and nature-related risks. The Center empowers Chinese financial institutions and business to invest in sustainable agriculture and husbandry, through policy research, innovative investment and financing mechanism, as well as bilateral and multilateral international exchanges.
On the principle of respecting, aligning with, and protecting nature, it is important to stick to the bottomline of ecological security, enabling the ecosystem to rest and regenerate. The value of ecological products can also be increased by protection and benefited in turn, which will foster a harmonious coexistence between human and nature. Through a review of domestic and international policies, innovative financing models, the Center aims to engage private capital in supporting the value realization of ecological products and attracting more financing into natural capital.
Natural ecosystems, such as forests, grasslands, farmlands, soils and oceans, have enormous potential for carbon sequestration. Better capacity of natural carbon sinks is an effective approach to addressing climate change while conserving biodiversity. Ecological carbon sinks can also create multiple benefits for society, ecology and the economy. Under the precondition of ecological well-being, the Center supports the regions and landowners with rich forest resources to identify and develop forestry-based carbon sink resources that can be traded domestically and internationally.