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Finance Policies

Finance enables conservation and sustainability. Effective environmental policies and actions depend on adequate funding to restore ecosystems, implement climate solutions, and support sustainable practices. Mobilising finance from public, private, and EU sources is essential for securing the long-term health of Europe’s people, economy, and environment.

FINANCE POLICIES: WHY IT MATTERS

Policies that link finance to conservation incentivise sustainable development, drive innovation, and ensure resources are allocated to address biodiversity loss, climate change, and pollution. These investments deliver both environmental benefits and economic returns by preventing future costs linked to degradation and disasters.

 

Key Connections

    • Public funding for nature: EU programmes like LIFE, Interreg, and Horizon Europe support large-scale restoration and conservation projects, driving local and transnational impact.
    • Green finance and natural capital: Instruments like green bonds and various voluntary credit systems based on Ecosystem Services mobilise private sector investment in projects that restore nature and sequester carbon.
    • Corporate responsibility: The Corporate Sustainability Reporting Directive (CSRD) is a pivotal EU policy that mandates companies to disclose their environmental, social, and governance (ESG) impacts. This directive aims to enhance corporate transparency and accountability, encouraging businesses to invest in sustainable practices and conservation efforts.

 

Facts

    • Economic cost of inaction: Biodiversity loss and ecosystem degradation cost the EU economy over €450 billion annually, including impacts on agriculture, fisheries, and health.
    • Green Deal Investment Plan: The EU aims to mobilise €1 trillion over a decade to support the European Green Deal and transition to a sustainable economy.
    • Private sector engagement: The European Investment Bank (EIB) reports that every €1 invested in natural capital can generate €7 in economic benefits through ecosystem services.

Green Budgeting in Europe – EEA

 

Action

Scaling up sustainable finance requires innovative funding mechanisms and cross-sector collaboration. To accelerate conservation and sustainability goals, policymakers must align public investments, regulatory frameworks, and private capital. Greater transparency and accountability in funding allocation are crucial to ensuring the maximum impact of finance on nature and society.

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This website is co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. Neither the European Union nor CINEA can be held responsible for them.