Why Asia is especially vulnerable to biodiversity loss

Why do we need to address global biodiversity loss and the role that finance can play in this endeavor?

Around 60% of global GDP is moderately dependent on nature’s services, such as clean water and pollination. The UBS white paper titled "Bloom or Bust: Aligning Technology and Finance to Address Biodiversity Challenges" explores the economic risks posed by biodiversity loss and the potential financial opportunities in investing in nature-positive solutions.

Asia hosts some of the world's most critical biodiversity hotspots, such as the Coral Triangle and tropical rainforests. Investing in these regions can have a significant impact on global biodiversity and local economies.

Nature-based solutions, like mangrove restoration, not only enhance biodiversity but also improve climate resilience. For example, planting mangroves in coastal areas can reduce flooding and sequester carbon, offering dual benefits.

Governments in Asia are increasingly recognizing the importance of biodiversity and impact investors can benefit from aligning their strategies with national biodiversity action plans and leveraging government incentives aimed at promoting sustainable practices such as green bonds. 

A number of research stresses the need for an estimated $700 billion annually to reverse biodiversity loss by 2030. This funding gap can be addressed by leveraging private capital through innovative financial mechanisms, such as blended finance and nature-based solutions. 

However, it is vital that there is collaboration between governments, industries, academia, and communities. This includes creating economic incentives, clear biodiversity strategies, and mainstreaming better data and methodologies.

For more details on expanding the opportunities for sustainable investment (Markets Media), you can visit the UBS Green Bonds page.