The global community recently gathered in Cali, Colombia, for COP16, underscoring the urgency of biodiversity conservation. Now, as attention turns to COP29 in Baku, Azerbaijan, climate finance takes centre stage, with high expectations for resolutions on the new climate finance goal and updated national climate commitments. Dubbed the “Finance COP,” this year’s conference is set to address pressing financial challenges. Looking further ahead, Brazil’s role as host of COP30 offers an opportunity to tackle the interconnected issues of climate change and biodiversity loss. With Brazil’s standing as both a megadiverse and emerging economy, the private and financial sectors have a critical role to play in directing capital towards nature-based solutions (NbS) and in adopting practices that minimize negative impacts on ecosystems.
The gravity of climate change and biodiversity loss is becoming more evident each year. From 2015 to 2023, record-breaking heat and extreme weather events have increased dramatically. Economically, scaling up nature-centred businesses offers a viable solution. NbS not only mitigates emissions effectively – at a third of the cost of conventional approaches – but could also save up to USD104 billion in adaptation costs. Across the globe, corporates, financiers, Indigenous communities, subnational entities, and universities are already advancing climate and biodiversity goals. The Nature Positive for Climate Action campaign, which links voluntary climate commitments with actions for nature, has gained support from over 500 business and finance leaders, mobilizing an impressive US$17.7 trillion in assets towards TNFD-aligned risk management and reporting.
Despite significant progress, much more scaling is needed. Effective climate finance requires strong connections between investors and projects ready for investment. However, two key challenges persist: limited opportunities for matching projects with investors and the geographical distance of many impactful projects from financial hubs, which often restricts visibility. These disconnects can leave project developers and financiers “lost in translation,” hindering access to funding. To bridge this gap, we need regular spaces for interaction, where on-the-ground projects and financiers can better understand each other’s needs and expectations.
Regional Platforms for Climate Projects (RPCP): The Latin America and Caribbean Pipeline
The RPCP initiative, launched in collaboration with UN Deputy Secretary-General Amina J. Mohammed and COP27 UN Climate Change High-Level Champion, Dr. Mahmoud Mohieldin, mobilizes capital towards impactful climate projects where it’s most needed. In 2024, the RPCP reviewed 133 projects across 19 Latin American and Caribbean (LAC) countries, primarily focusing on Nature, Sustainable Food & Agriculture, and Energy sectors. Of these, 16 promising startups and SMEs were shortlisted, collectively requiring over US$320 million in funding, with individual funding needs ranging from US$5 million to US$100 million. Most of these ventures emphasize NbS, supporting climate resilience, carbon sequestration, and biodiversity conservation.
Two standout ventures in the 2024 pipeline illustrate how NbS can drive sustainable business models and leverage data and technology for climate action:
These ventures showcase the potential of businesses to address the interconnected challenges of climate change and biodiversity loss. However, to fully realize their potential, these projects need investors who understand nature-centric business models – a gap in traditional finance frameworks that often makes assessing cash flows difficult. Strengthening connections between these businesses and financial institutions will be essential to achieving the scale required to meet their missions. With the LAC region’s momentum from hosting COP16 in Cali and the upcoming COP30 in Belém, it’s poised to become a global leader in nature and climate solutions, inspiring others in the productive sector to follow suit.
As a Finance Youth Fellow from Brazil, I’m committed to helping create this future, where finance and nature work hand in hand to tackle our most urgent environmental challenges.
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