The Nature Brief for Business.

The Big Picture

Global finance remains conflicted as $8.9 trillion still flows into deforestation-linked activities even while new multi-billion pledges back forest restoration and Indigenous-led projects. Regulatory adjustments are reshaping disclosure obligations, with the EU easing reporting burdens and Asia emerging as a leader in corporate nature integration. Meanwhile, biodiversity credit markets are expanding but face scrutiny over weak verification, and nature tech breakthroughs in AI and sensing are rapidly redefining monitoring credibility.

Key movements this week:

• Biodiversity credits are scaling through new frameworks and pilots, but market credibility is undermined by limited independent verification and uneven standards.
• Nature tech is moving fast from pilot to deployment, with AI, remote sensing, and advanced MRV tools cutting costs and strengthening integrity in carbon and biodiversity markets.
• Nature and net-zero strategies are converging, as evidence of land carbon losses drives innovation in removals, from biochar and ERW to fungi-focused restoration, with wildfires adding new urgency.

Market Essentials

Finance

• A new Global Canopy report finds $8.9 trillion was channelled to the deforestation economy by 150 financial institutions in 2024. The scale of investment highlights systemic risk exposure despite net-zero pledges.
• The UK government is planning to mobilise $500 million for Amazon conservation in Peru by 2027. Financing will flow through mechanisms including habitat banks, thematic bonds, and payments for ecosystem services.
• Institutional investors have committed only $11.5 billion to natural capital, or 0.2% of combined assets. Analysts argue this highlights a significant gap between rhetoric and action on nature-positive investment.
• Everland and BNP Paribas announced a $50 million partnership for Indigenous-led projects. The direct financing model targets high-impact initiatives certified under the Equitable Earth standard.
• The Brazil Restoration and Bioeconomy Coalition pledged $2.6 billion toward forest restoration and Indigenous bioeconomy projects. The commitment represents major progress toward its $10 billion 2030 goal.

Reporting

• The EU announced plans to streamline sustainability reporting rules to reduce administrative burdens. Critics warn simplification risks weakening biodiversity safeguards, while businesses welcome eased compliance obligations.
• Australian and New Zealand timber producers are preparing for the European Deforestation Regulation. Despite uncertainty on implementation dates, sectors are investing in supply chain transparency to protect market access.
• The TNFD praised Asian companies for demonstrating “incredible leadership” on nature disclosures. Executives highlight the region as a global front-runner in embedding nature into corporate risk management.

Trend Watch.

Biodiversity Credits

Nature Tech

• A Royal Society study found 8 of 11 biodiversity credit suppliers lack independent verification. Weak oversight raises integrity concerns and calls for more rigorous market standards.
• CAR Cundinamarca in Colombia officially recognised habitat banks as conservation tools. The move enables environmental compensation quotas to generate voluntary biodiversity credits.
• A farm near the Norfolk-Suffolk border is converting arable land to wildlife habitats. The Coney Weston Habitat Bank project plans to sell Biodiversity Net Gain units, creating a new income model for farmers.
• AI-driven remote sensing tools are being deployed in the Philippines for rice farming. They identify low-methane regions, offering pathways to cut agricultural emissions.
• Wyke Farms in the UK launched an AI-based birdsong monitoring pilot with Chirrup.ai. The initiative tracks biodiversity to inform regenerative agriculture practices.

Nature & Net-Zero

• New research shows human activity has depleted global soil and vegetation carbon stocks by 25%. The emissions rival all fossil fuel releases since the mid-1970s, underscoring land-use urgency.
• A UK study suggests scaling quarries could boost ERW efficiency. Expanded extraction sites may enable 700 million tonnes of CO2 removals by 2070, though social opposition remains.
• The Paris Agreement Crediting Mechanism body will debate non-permanence standards in September. Resolving reversal risk is critical to unlock Article 6 carbon trading.
• Global Forest Watch data finds wildfires overtook agriculture and logging in 2023–24 as the main driver of forest carbon loss. The findings highlight compounding risks from climate change.

Quick Hits.

Policy:

• Norway has granted coral reefs ‘selected habitat’ status, requiring special consideration in development.
• South Africa’s draft tax reform would recognise removals and raise penalties for over-emitters by 2026.
• India’s Deep Ocean Mission achieved a 5,002m dive, amid global scrutiny on deep-sea mining impacts.

Markets:

• US carbon prices rallied after ICVCM approved IFM and biochar methodologies for the CCP label.
• Congo Basin credits projected to reach $30/t highlight growing investor confidence in tropical ecosystems.
• Papua New Guinea secured its first major REDD+ results-based payment.

People:

• Himachal Pradesh in India will develop 77 ecotourism forest sites to balance environment and livelihoods.
• The Equator Prize honoured 10 Indigenous and community-led organisations for nature-positive solutions.
• Advocates warned that a new Philippines land management framework risks greenwashing and Indigenous land threats.

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