The Nature Brief for Business.

The Big Picture

Sustainability disclosure continues to divide regulators and the private sector, with the EU fielding pressure from investors to preserve ambition, even as it delays simplified CSRD frameworks. ISSB is accelerating efforts to harmonize sustainability reporting globally. Meanwhile, countries and companies are stepping up climate targets, nature finance is diversifying through debt swaps and blended funds, and carbon credit markets are inching towards legitimacy through new tech and infrastructure.

Key movements this week:

• Biodiversity credit markets remain nascent, with uptake lagging, but new regional and cross-border models are emerging.
• Nature tech continues a strong funding run, especially in wildfire detection, AI monitoring, and ecosystem modeling.
• Nature and net-zero are converging via reforestation finance, secondary forest potential, and growing interest in international carbon credits.

Market Essentials

Finance: Innovation and tension in sustainable finance flows.

• Spain and the World Bank launched a global debt swap hub to redirect funds to climate and development. The initiative could unlock large-scale financial relief for vulnerable countries, channeling repayments into climate adaptation and biodiversity conservation.
• UBS raised $100M for a blended finance SDG fund, indicating robust investor interest in impact strategies. Blended finance models like this reduce risk for private capital and are emerging as a critical tool to mobilise resources at scale.
• WWF flagged that billions from EU financial institutions support companies linked to nature loss, spotlighting gaps in “sustainable” finance. The report calls for tighter screening and accountability in ESG portfolios, potentially influencing future EU finance policy and regulation.
• Nokia tied terms of a €1.5B debt facility to its value chain emissions targets, showing deeper ESG integration in corporate finance. Linking debt terms to environmental performance provides a financial incentive for emissions reductions and increases lender scrutiny of climate commitments.

Reporting: Sustainability reporting reform faces resistance, as global standards evolve.

• A coalition of over 150 companies and investors urged the EU not to weaken CSRD and CSDDD, citing competitiveness risks if ambition is diluted. This pushback reflects a clear market demand for strong, standardized sustainability disclosure that maintains trust and comparability across the bloc.
• ISSB released draft updates to SASB standards across nine industries, aiming to better align with frameworks like GRI, TNFD, and EFRAG. The revisions are designed to improve global interoperability and make it easier for companies to meet multiple reporting obligations with a single set of disclosures.
• The EU extended its CSRD simplification deadline, reflecting the complexity of balancing usability with integrity. The delay signals the EU’s recognition that simplifying reporting must not come at the cost of undermining the purpose or ambition of the original legislation.

Targets: Bold new national and corporate emissions goals raise the bar.

• The EU proposed cutting GHGs 90% by 2040, a softening of previous targets, allowing international credits and domestic removals—signalling a greater role for carbon markets. If adopted, this would create long-term demand for high-integrity carbon removal projects globally, especially from developing nations.
• Norway committed to reducing emissions by 70–75% by 2035, reinforcing its leadership on deep decarbonisation. This ambition places Norway among the most aggressive emission reductions in Europe and will likely require rapid transformation of its energy, transport, and industrial sectors.
• British Airways inked a new SAF purchase deal expected to cut 400,000 tonnes of CO2, demonstrating action in hard-to-abate sectors. This move underscores the aviation sector’s reliance on SAF to meet net-zero goals, and could spur further investment in fuel supply chains.

Trend Watch.

Biodiversity Credits

• Only 2% of registered UK Biodiversity Net Gain units have sold, underlining liquidity and demand barriers in the market. This low uptake suggests deeper structural issues, such as regulatory uncertainty, market fragmentation, or lack of buyer readiness.
• Nordic countries are being pushed to create a regional biodiversity market, reflecting the need for tailored solutions. A regional approach could provide more consistency in credit quality and verification, while fostering local innovation in credit design.
• A Colombian-Malaysian alliance between Cercarbono and Malaysian state Johor is building infrastructure for carbon and biodiversity markets in emerging economies. The partnership aims to standardise monitoring, reporting, and verification (MRV), helping to attract international finance and boost project credibility.

Nature Tech

• A digital twin launched in the Red Sea is now tracking coral restoration in real time, an early example of AI-powered conservation. The technology allows for adaptive management and faster response to environmental stressors, improving restoration outcomes.
• Pano AI raised $44M for wildfire detection tech, while Muon Space secured $146M for Earth-scanning satellites. These tools enable real-time, high-resolution monitoring of environmental risks, and could significantly reduce damage through early intervention.
• GIST Impact and London’s Natural History Museum will integrate the Biodiversity Intactness Index into GIST’s tools, offering deeper insights for corporates. The integration will enhance companies’ ability to quantify biodiversity risks and dependencies, supporting more robust disclosure and target-setting.

Nature & Net Zero

• A WRI study shows secondary forests can sequester carbon up to 8x faster than planted trees, yet are often overlooked in climate strategies. Recognising this potential could unlock new, low-cost natural climate solutions with co-benefits for biodiversity and resilience.
• Brazil’s reforestation market could be worth $141B, with high-return potential for large-scale carbon removal. This estimate positions Brazil as a major player in voluntary carbon markets and could attract significant private and institutional investment.
• The EU may allow international carbon credits to count toward its 2040 targets, raising hopes for finance inflows into developing nations. While this could scale climate finance, it may also raise concerns about offsetting domestic responsibility and environmental integrity.

Quick Hits.

Policy:

• EU Green Claims Directive remains in force, contrary to earlier confusion, confirming the bloc’s commitment to anti-greenwashing.
• Rwanda aims to raise $500M for biodiversity, partly via environmental fines on a new digital platform.
• Pakistan has launched a “Green Credit Programme” rewarding environmentally positive behaviours.
• Mexico released a national restoration plan including “marine prosperity areas” to balance conservation and growth.
• UK created the Wealden Heaths National Nature Reserve to protect key species and extend conservation zones.

Markets:

• JPMorgan launched a blockchain-based carbon credit platform to boost transparency and liquidity.
• Luxembourg Stock Exchange rolled out a climate transition data tool for corporate debt issuers.
• UNEP targets gaps in insurance guidance on nature risks to support nature-positive investment frameworks.
• Namibia plans to launch a biodiversity finance facility with UNDP support.

People:

• UNESCO appointed Indigenous co-chairs to advance traditional knowledge in climate and biodiversity governance.
• Astrid , UN Special Rapporteur on the human right to a healthy environment, spotlights the risk of conservation efforts that ignore human rights, calling for a rights-based approach.
• Pakistan decried “climate injustice” after deadly floods, underscoring vulnerability in the Global South.

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