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.
Natural markets aim to better account for and price the value of nature. Any serious and scalable plan to protect, invest in, and restore nature as critical infrastructure relies on natural markets as a key component. Biodiversity credits, as an important tool in natural markets, fundamentally transform the economic value of ecosystem services into tradable assets through market mechanisms, attracting private capital into conservation efforts and bridging the gap in public funding. This mechanism draws on the successful experience of the carbon credit market, providing new pathways for businesses, investors, and financial institutions to participate in biodiversity conservation. The Natural Capital Center supports regions rich in biodiversity resources in scientifically identifying and developing these assets, and through methodological research and financial instruments, converts biodiversity into biodiversity credits in accordance with international standards, promoting the pilot and implementation of biodiversity credit markets domestically.
Nature-related disclosures refer to the practice by which companies or financial institutions systematically identify, assess, and disclose their dependencies and impacts on ecosystem services, integrating these into strategic decision-making and risk management processes. Currently, biodiversity loss has become one of the core risks threatening long-term economic stability and human well-being. Integrating nature-related considerations into core governance frameworks has become a widely accepted consensus, and disclosures are the foundation for implementing this consensus. By referencing scientific and comparable nature-related disclosure frameworks, companies and financial institutions can demonstrate their exposure to nature-related risks and their management strategies to investors, regulators, and the public, thereby enhancing asset resilience and market transparency. The Natural Capital Center, referencing the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) and its LEAP approach, supports financial institutions in conducting research and practice on nature-related disclosures, promoting China’s active role in global biodiversity governance.
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.
