Robin EDME

Is biodiversity risk the missing link in financial stability assessments? Discover insights from a groundbreaking study on France’s financial system!   I am very proud to be part of the co-authors of a peer-reviewed article led by Paul Hadji-Lazaro and Mathilde Salin, with Romain Svartzman, Etienne Espagne, Julien Gauthey, Julien CALAS, Antoine Godin and Antoine Vallier. 📊 Data and Method: ➡ Scope: Analysis of the biodiversity-related financial risks (BRFR) in the French financial system, focusing on the securities portfolio as of end-2019 and the underlying firms ➡ Measurement Tools Used: - Biodiversity Impacts Analytics powered by the #GlobalBiodiversityScore (BIA-GBS): biodiversity impacts - ENCORE Database: dependencies on ecosystem services (can also be accessed through BIA-GBS or the GBS) ➡ Risk Types Evaluated: - Physical Risks: through firms' dependency on ecosystem services like water provision. Risks arise from the degradation of ecosystem services critical to firms' operations. - Transition Risks: through firms’ biodiversity footprint. Indeed risks emerge from potential regulatory and market shifts towards nature-positive practices impacting firms with high biodiversity impacts. ▶ This dual analysis of dependencies & impacts provides a comprehensive view of how biodiversity loss can affect financial stability. See slide 1 for the approach's overview. 🔍 Results: - Physical Risks: 42% of the portfolio value is linked to firms highly dependent on essential ecosystem services which cannot be substituted by technology. See slides 2 to 4 for more details. - Transition Risks: The portfolio's biodiversity footprint is equivalent to the loss of 130 000 km² of pristine nature (130 000 MSA.km2). See the full paper (link in comments) for the associated charts. 🌟Key novelty of the paper: Definition of "High-Stakes" Sectors: - Criteria: Sectors identified based on their high or very high dependencies on ecosystem services & significant biodiversity footprints (top 10% footprint or footprint intensity). - Examples: Agriculture and mining are highlighted as having both high direct impacts & critical dependencies on biodiversity. Food processing has high supply chain impacts & direct critical dependencies. Other high-stake sectors include forestry, chemicals and construction. - Relevance: Helps prioritizing sectors for focused risk assessment & mitigation strategies. This paper which has been over a year in the making and marks a pivotal step in integrating biodiversity risks into financial assessments, especially with its practical “high-stake” sectors definition in terms of physical & transition risks. Next steps involve developing scenarios and deeper analyses of financial adjustments to mitigate potential shocks. 💬 Central banks have been leading the way in publishing BRFR assessments. Overall I feel like finance is the currently the main driver pushing for more action on biodiversity, do you share that feeling?

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I've been thinking about the role of double materiality assessments and how important it is to get this right ... And to make sure, particularly in the assessment of nature-related risk, that the scope is sufficiently broad, deep and truly integrated and that the currencies used are not only financial. What are we measuring and why? And if we only measure and manage the tip of the ice berg (those things that come to the top in a materiality assessment) are we missing the fundamental substance that underpins everything, and maintains the resilience and persistence of the system in the first place? This article resonates after discussions at #InnovationZero earlier this week ... What a packed week it has been! 🐝 The article discusses how central banks and financial supervisors are recognizing the threat of nature loss to their mandates. It highlights the Network for Greening the Financial System's suggestion to prioritize nature-related risks by focusing on specific ecosystems, particularly those subject to tipping points—critical thresholds leading to potentially catastrophic global impacts. 🌳 It explores various ecosystem tipping points (ETPs) and their economic drivers, such as climate change and deforestation, emphasizing the risks they pose to economic and financial stability. The article argues that current modeling efforts may underestimate these risks, and there should be a focus on preventing ETP occurrences, not just updating models. 🦂 The concept of double materiality is proposed as a promising approach, focusing on where financial actors are exposed to economic activities driving ecosystems toward tipping points. The article emphasizes the need for coordination between financial policymakers and ministries of finance, environment, and industry to prevent ecological risks. 🦒 Furthermore, it explains the dynamics of tipping points, especially in climate change and nature loss contexts, and their potential consequences for economies and societies. It discusses how crossing tipping points can lead to irreversible changes, affecting sectors like agriculture, forestry, and transportation, and spreading risks globally through interconnected value chains and weather patterns. The authors acknowledge the challenges in quantifying these risks but suggest improvements in modeling frameworks and collaboration with Earth systems scientists. It also emphasizes the importance of precautionary financial policies and international collaboration to address underlying drivers of ecosystem destruction and achieve global climate and biodiversity targets.

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🌍 Call for Applications: Subnational Climate Fund 🌍 Subnational Climate Fund is accepting project submissions. 🔎 About Subnational Climate Fund (SCF) : The goal of the SCF is to catalyse climate mitigation and adaptation solutions at the subnational level through a transformative finance model. The model is designed to attract public and private investment and to deliver certified climate and Sustainable Development impacts and Nature-based Solutions. ☑️ Eligibility Criteria: - The project must be located in one of the following SCF beneficiary countries: Cambodia, Fiji, Indonesia, Myanmar, Bahamas, Brazil, Chile, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Panama, Uruguay, Albania, Jordan, Lebanon, Montenegro, Morocco, North Macedonia, Tunisia, Burkina Faso, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Gabon, Guinea, Kenya, Mali, Mauritania, Mozambique, Nigeria, Rwanda, Senegal, South Africa, Togo, Uganda. - The project targets one or more of the following sectors of activities: Sustainable Energy Solutions, Waste and Water Management, and Nature-based Solutions. - The expected total capital contribution by the SCF for the project is between 5 to 75 M USD. - Replicability and scalability of investments. - Returns on investment. - The project does not fall under the Exclusion List in the SCF Environmental and Social Management System (ESMS). - The project is a “greenfield” project where the capital contribution will support new activities, improvements, and constructions. - The project is expected to contribute positively to climate action (SDG 13) and positively contribute to at least two other SDGs. - Limited to Environmental and Social Risks (Category B for GCF). 📝 How to Apply: Use the following link to apply: https://lnkd.in/gDB7bvJb ⏳ Applications are accepted on a rolling basis. 🔎 Find this opportunity and more on our website: https://fire.biofin.org/ #climate #investment #ClimateFund #SustainableFinance #OpportunityAlert #ClimateFinance #SustainableEnergy #WasteManagement #WaterManagement #NatureBasedSolutions #SDG #development

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[CLIMATE RISKS] There is a growing demand for companies to provide information on physical climate risks through corporate reporting. Several regulatory frameworks and disclosure systems are encouraging businesses to assess and report on these risks: 🇪🇺 The European Taxonomy encourages companies to disclose information related to mitigation and adaptation efforts, identifying 28 specific climate risks (see picture) The CDP questionnaire asks companies to provide details on risks that could have a substantial financial or strategic impact on their operations. The #CSRD (Corporate Sustainability Reporting Directive) requires a description of the processes used to assess climate-related impacts (by asset), risks, and opportunities, as well as the mitigation and adaptation policies, actions, and resources allocated for addressing climate change. Companies are also expected to disclose the potential financial effects of: - Significant physical climate risks - Material transition risks - Climate-related financial opportunities Additionally, the assessment of climate risks is typically based on two scenarios: RCP8.5, representing a pessimistic "business as usual" trajectory. RCP2.6, an optimistic scenario assuming strong emission reduction efforts. These reporting requirements aim to increase transparency and enhance the integration of climate risks into corporate strategic decision-making. At dss+ we we would like to support you beyond reporting, in implementing decarbonization plans and adapting your business strategy to these risks. Please for any question, reach me! Walter Booysen Gerhard Bolt Ali Assy Laura Chovelon

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The third working group of the IPCC focused on mitigation and climate change. There's a rapidly closing window to cut emissions in order to keep within 1.5C. First, as of time of issuing report, 80% of the carbon budget for 1.5 had already been used. Only 20% remained. Also, peaking of emissions needed to happen between 2020-2025. That's yet to happen. It is of course better to remain below 1.5 than overshoot and come back later. These are some of the insights from the report, the rest of which I summarized below. Have a look: #mitigation #climateaction #climatechange #wgiii #ar6 https://lnkd.in/dwnpkKnS

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Our last #NexusAssessment Report IPBES is clear about numbers. If you are really interested to learn about Biodiversity for policies and private actions ; here the Key Highlights from the Report: 1. Biodiversity Decline: A 2-6% loss per decade across key indicators over the past 30-50 years, affecting ecosystems globally. 2. Impact on Populations: Over 50% of the global population resides in areas severely impacted by biodiversity loss, declining water and food security, health risks, and climate change. 3. Economic Dependence on Nature: • $58 trillion: Annual global GDP reliant on nature. • Up to $25 trillion: Annual external costs from the fossil fuel, agriculture, and fisheries sectors due to negative environmental impacts. 4. Financial Drivers of Biodiversity Loss: • $5.3 trillion: Annual private-sector financial flows harming biodiversity. • $1.7 trillion: Annual public subsidies incentivizing environmental damage. 5. Illegal Activities: $100 billion-$300 billion in illegal resource extraction annually, exacerbating biodiversity loss. 6. Funding Gaps: • Up to $1 trillion annually needed to meet biodiversity targets. • At least $4 trillion annually required to meet SDGs alongside biodiversity needs. 7. Promising Investments: • $42 billion: Current annual funding for ecosystem services. • Urban nature-based solutions and plastic reduction efforts showing tangible benefits in water quality, flood control, and public health. 8. Global Commitments: • 30% of the world’s land and seas to be protected by 2030 under the Kunming-Montreal framework, with potential cross-sectoral benefits if effectively managed. 9. Equity and Indigenous Knowledge: • Equitable response strategies amplify benefits across biodiversity, water, and health systems. • Indigenous practices, such as tenure rights in the Brazilian Amazon, have proven highly effective in reducing deforestation and conserving ecosystems. 10. Local Success: Paris’ €47 million investment in ecological farming transitions reduced pollution and improved water quality, illustrating the potential of targeted local action. This report underscores the interconnectedness of biodiversity, economy, and human well-being, emphasizing the urgent need for equitable, sustainable, and coordinated global action. Media Release: IPBES Nexus Assessment /nexus/media-release Daniel Silva Sepúlveda Chapter Zero Chile

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https://lnkd.in/e_vyBivw Summary of COP 16 on Biodiversity Cali, Colombia. 21.10 - 01.11.2024. My Interview at the Swiss television. States have proved unable to provide 200 billion dollars per year by 2030 (it was 15 billion in 2022, according to the OECD). On the positive side, biodiversity is back on the global political agenda, with more than 20,000 participants. Two advances have been made: 1) indigenous peoples will be at the negotiating table alongside governments, giving them greater political clout; 2) companies making money from the digitised genome of living things will have to contribute to its protection. Above all, the pharmaceutical, biotech and cosmetics sectors must redistribute a 'fair and equitable' share of their profits to those who work on the ground: local communities and indigenous peoples. We are maintaining the political momentum created in Montreal, which launched the Global Biodiversity Framework 2020-2030. But bold decisions and implementation are lagging behind the urgency of action. We are losing biodiversity at a rate of more than 1% per year: wildlife populations have declined by an average of 69% over the past 50 years (WWF, 2022). As custodians of 80% of the planet's biodiversity, indigenous peoples and local communities may be our best partners in reversing this deadly trajectory.

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Three #REDD+ methodologies have recently been approved by the The Integrity Council for the Voluntary Carbon Market (ICVCM). What does that mean? What difference does it make for buyers interested in #NCS #carboncredits ? The Natural Climate Solutions Alliance has invited the teams who developed these methodologies, Architecture for REDD+ Transactions (ART), and Verra, (and others!) to share what these methodologies require and how these requirements support high-integrity outcomes. Join the NCSA event on: 📅 Date: December 17, 2024 ⏰ Time: 5:00 PM - 6:00 PM CET 📍 Sign up: https://lnkd.in/eXPU9hDi This session will unpack what this milestone means for REDD+ carbon credits and explore: ✔️ How the methodologies have evolved to align with The Integrity Council for the Voluntary Carbon Market (ICVCM) ✔️ How projects/programs deliver high-integrity NCS carbon credits ✔️ What this means for businesses looking to invest in natural climate solutions Whether you’re already engaging with REDD+ or planning your next steps, this session will provide the knowledge and insights needed to make informed decisions about high-integrity carbon credits. This is a must-attend for businesses, investors, and sustainability professionals committed to driving meaningful climate and biodiversity outcomes. 👉 Register now and join us on December 17! 🔗 https://lnkd.in/eF9mMppi Looking forward to hearing from: Naomi Swickard, Christina Magerkurth, Jo Anderson, Jennicca Gordon, Zoe Quiroz Cullen #REDDplus #NatureBasedSolutions #VoluntaryCarbonMarket #Sustainability #ClimateAction #NatureAction

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How significant is the gap between current emissions reduction commitments and the Paris Agreement goals? The UNFCCC Secretariat has released the "Nationally Determined Contributions (NDCs) under the Paris Agreement Synthesis" report on October 28, 2024. This comprehensive synthesis analyzes 168 NDCs, representing 195 Parties to the Paris Agreement as of September 9, 2024. Key Insights: Emission Levels: Even with full implementation of current NDCs, emissions are projected to reach 51.5 gigatonnes of CO2 equivalent by 2030. This reduction is only 2.6% lower than 2019 levels, indicating a small shift despite increased commitments. Target vs. Need: The IPCC states that global greenhouse gas (GHG) emissions need to be reduced by 43% by 2030 and 60% by 2035 relative to 2019 levels to limit global warming to 1.5°C by century's end. This means a gap of approximately 40% remains to meet the 2030 milestone. Sector Coverage: Nearly 81% of NDCs cover all major economic sectors, including energy, agriculture, land use, and waste management, with 94% of Parties including quantified mitigation targets. Next Steps: The next NDC submission round, setting targets for 2035, is due by February 2024. For a meaningful impact on the climate, countries must dramatically step up climate ambition and action in these upcoming commitments. With emissions still far from the required reductions, urgent action, robust policies, and international cooperation are essential to achieving the Paris Agreement goals. #ParisAgreement #ClimateAction #NDCs #UNFCCC #SustainableFuture #GHGReduction #India #Netzero #Energy #CO2 #Buildings #Industry #MEP

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Experts share how deltaic countries leading in #climateadaptation use high-ambition decision-making and large-scale investment to prepare for future challenges. During the webinar series "Mobilizing Finance for Climate Adaptation in Deltas", hosted by the Global Center on Adaptation to support the ambition of the International Panel on Deltas and Coastal Areas (IPDC), experts including Meike van Ginneken, Peter Glas and Amgad Elmahdi highlighted: 🌿 Deltas are where human ambition meets the reality of #climatechange 💰 Investing in delta adaptation is essential and makes economic sense 💪 Improving access to finance for low-income countries will accelerate adaptation Watch the recording and learn more: https://lnkd.in/eWMKb6cr

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The COP29 Presidency outlines key strategic priorities for 2024 to enhance climate ambition and enable action - in solidarity for a green world - with a focus on : - Climate finance: getting an agreement on the The New Collective Quantified Goal on Climate Finance (NCQG) - NDCs: mobilizing all Parties to submit new Nationally Determined Contributions and climate action plans that match the level of ambition agreed in Paris. See also the timelines with the Heads of States and Leaders Summit taking place from November 11th to 13th and the finance day on the 14th of November 2024. Let’s continue to unite and stay mobilized for climate action. Together we are stronger. Together WE Build Bridges for Climate & Sustainability. COP29 Azerbaijan María Fernanda Espinosa Garcés Elise Buckle Hindou Oumarou Ibrahim

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