BIOFIN

Objectives

BIOFIN-EU aims to establish a comprehensive framework and technology that fosters the necessary conditions for nature-positive investments.

BIOFIN-EU is actively innovating and experimenting with novel approaches for capturing, aggregating, and analysing biodiversity and ecosystem services (ES) data. The goal is to minimise transaction and reporting costs associated with finance that supports the protection and restoration of biodiversity.

Background

If biodiversity is to be placed back on a path to recovery, new tools and knowledge are required to redirect financial resources from destructive economic activity towards nature-positive investment. The financial system consists of interacting and dynamic actors who value certainty (rules and governance structures) and efficiency (outcome transparency and low monitoring costs).

We aim to create a unifying framework and technology that creates the enabling conditions for nature-positive investments. Activities that protect and restore biodiversity (such as nature-based solutions) are frequently unique, multi-actor efforts carried out at a local scale with positive, but complex outcomes. We resolve this by establishing a categorisation of nature based solutions (NBS) alongside a menu of good governance structures and a library of stakeholder engagement. This will draw on expertise and best practice in natural capital and economics to streamline decision making and accelerate transaction completion by standardising the investment process and creating the enabling conditions for large-scale finance.

To accelerate nature-positive business models, we create a data analytics and underwriting engine to advance conventional project appraisal and risk assessment and account for and model expected outcomes. We will assess and validate our approach across diverse real-life case studies (learning sites). Our findings and approach will initiate a twin green and digital transition that resolves transaction complexity and creates the enabling conditions for large-scale investment that are required if the EU is to achieve its biodiversity goals. Our outcomes will identify remaining gaps in the Taxonomy and support policy forming through evidence-based recommendations and we will co-design, develop and establish pathways for skills and knowledge accelerators for the European financial services industry.

Expected results

• BIOFIN-EU Data Analytics & Underwriting Engine to allow discovery, purchase, use and contribution of ES/NBS raw data and provide various analytics services.
• BIOFIN-EU Database to bring together high-quality biodiversity and Ecosystem Services data from various NBS sources.
• Policy Recommendations to develop accounting standards, financial services regulation and related policy guidance.
• BIOFIN-EU Nature Positive Business Model Builder to support the decision-making towards NBS lending/investments.
• Skills and Knowledge Accelerators to transfer new knowledge through training, business simulation, case studies and mentoring courses of the BIOFIN-EU activities.

ILSI Europe's contribution

ILSI Europe will be involved in coordinating collaborative activity with agri-food sector industries and contribute to the multi-actor approach being used in WP4 (Biodiversity-Linked Decision Support: From Data to Financing​) and WP5 (Financial Instrument Design & Business Model Innovation​). BIOFIN-EU activities and outcomes will be communicated
and disseminated through ILSI Europe’s network (WP7: impact maximisation).