The private sector is increasingly understanding that their business models and our economies are fundamentally reliant on nature and the ecosystem services it provides.
The continued loss of nature and biodiversity and its intersection with climate change impacts present systemic risks to businesses across all sectors, especially agri-food and financial services. Policymakers must strive to address both climate and nature to achieve necessary emissions reductions while halting nature loss.
A few weeks before COP29, the Convention on Biological Diversity (CBD) COP16 took place in Cali, Colombia in October. This was the first biodiversity COP since the landmark Kunming-Montreal Global Biodiversity Framework (GBF) was agreed in 2022 and the largest such event in the history of CBD.
Amongst a plethora of report launches and corporate announcements, two stand out as particularly noteworthy from a private sector perspective. Firstly, it was announced that 502 organisations globally – including KPMG - have committed to adopting Taskforce on Nature Related Financial Disclosures (TNFD) aligned risk management and corporate reporting.
Furthermore, three companies (Kering, Holcim and GSK) have set and had approved Science Based Targets for Nature - for land and freshwater - for the first time. This is an important milestone as setting science-based targets for nature is a vital step for companies to support the delivery of the GBF goals.
Although COP16 negotiations were suspended before the summit’s end without adopting a final strategy to scale up finance for biodiversity[1], some modest financial commitments to support the GBF Fund alongside the “Cali Fund” were made.
These commitments will see a portion of revenues generated by companies who utilise digitally sequenced information from nature being paid into a dedicated fund, of which half is delegated to Indigenous Peoples and local communities.
However, continued challenges to close the nature finance gap and increase accountability risk delaying the implementation of the GBF and further exacerbate the task of halting and reversing nature loss in the coming decades.
From an Irish perspective, it is noteworthy that Ireland was one of only 25 countries which fulfilled its contribution to the Global Biodiversity Framework ahead of COP16 by publishing its 4th National Biodiversity Action Plan (NBAP).
Under the newly enacted EU Nature Restoration Law, Ireland is also required to develop a detailed National Restoration Plan setting out how Ireland will protect and restore at least 20% of our land and sea by 2030 and all ecosystems in need of restoration by 2050.
This presents significant challenges, as laid bare by the recent EPA’s “State of the Environment Report” which assessed the overall state of nature in Ireland as ‘very poor’[2]. Deteriorating trends dominate, especially for protected habitats and bird populations, and Ireland is not on track to achieve current policy objectives and targets for nature.
Given the state of global biodiversity and the extent of the current nature-finance gap, there is clear need for COP29 to ensure synergies are being made between nature and climate solutions to halt nature and biodiversity loss while also delivering on emissions reductions.
This requires careful development and implementation of members states Nationally Determined Contributions, Nature Restoration Plans and National Biodiversity Strategy and Action Plans.
Both the Paris Agreement and CBD represent a critical juncture where countries must submit their updated national biodiversity strategy and action plans (NBSAPs) and nationally determined contributions (NDCs). At COP29 on 19th November, a Blue Zone side-event was held to discuss how national-level policy makers could advance “synergistic, just, and gender-responsive” actions across climate and nature in NDCs and NBSAPs.
This event builds on the recently published checklist for policy-makers on this topic developed by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the International Institute for Sustainable Development (IISD), and the World Wildlife Fund (WWF).[3]
Further guidance and education for policymakers on how to exploit these synergies and align NBSAPs with NDCs will be crucial to successfully delivering benefits for nature and climate at the national level.
On November 21st, the thematic day Nature & Biodiversity, Land Use, & Marine, Nature4Climate coordinated a global group of over 100 NGOs, business coalitions, companies, Indigenous Peoples organisations and influential individuals to mark “Nature Day”.
As part of this initiative, this private sector group issued an urgent ‘COP29 Nature Statement’ calling for UNFCCC Parties to properly recognise and finance nature’s role in addressing the climate crisis, or risk undermining global efforts to limit global warming to 1.5 OC[4].
This effort has been made to enhance the protection of critical habitats and improve the management of shared resources, underscoring the recognised interconnectedness of nature, climate, biodiversity, and health.
This year’s COP also highlighted the essential role of traditional knowledge in protecting ecosystems and addressing climate change. November 21st saw Indigenous leaders and community representatives sharing powerful insights on how securing land rights and promoting self-determined conservation efforts can enhance community resilience. Ensuring that the voices and wisdom of indigenous people are recognised and valued in conservation efforts must continue to be a global priority[5].
During Gender Day on November 20th, Mary Robinson highlighted the disproportionate impact of climate change on women and girls, particularly in the Global South. Robinson stressed the need for greater inclusion of women in climate decision-making processes and criticized the slow progress on gender-related initiatives.
As Ireland, like all Paris signatories, faces significant challenges to align to a Net Zero pathway, policymakers must also ensure we are addressing the national nature and biodiversity crisis, while recognising our global role to support adaptation through climate and nature finance.
Peatland restoration presents an important means of aligning nature and climate goals at home. In terms of our global responsibility, Minister for the Environment Eamon Ryan highlighted Ireland's commitment to providing €225 million in climate finance by 2025, emphasising the importance of supporting developing countries in their climate action efforts.
While progress has been made to deliver on the challenges facing nature, oceans and indigenous people, the overall negotiations are facing significant challenges to reach agreement on the $1 Trillion Climate Finance goal.
A new draft text has left out key funding commitments from wealthy nations, a central issue for developing countries that need financial support to transition to clean energy and adapt to climate change. The absence of clear financial commitments has been a major sticking point, with developing nations emphasising the need for substantial and predictable funding to meet their climate and biodiversity targets.
For more insights and to explore how KPMG can support your business in navigating the evolving regulatory landscape and developing a meaningful sustainability journey, get in touch with our team below.
