We need financing for more sustainable supply chains, less disruptive infrastructure, and better farming practices that preserve yield while minimising land degradation. 2/4  BIS - Central bankers' speeches  The Nature Conservancy estimates that the nature funding gap may be as high as 824 billion US dollars per year. So, what is needed for effective transition finance for natural capital? First, a clear set of goals to galvanise collective action to restore our natural capital. The goals must be ambitious yet realistic. Just as the Paris Agreement catalysed the push towards net zero, so can the Global Biodiversity Framework provide a nexus for science and finance to come together to tackle the systemic risks that nature loss poses. Goals to protect key biodiversity areas and integrate nature-related risk management into sustainable production will help to focus the financial sector's efforts. Second, forge public-private partnerships to mobilise financing for naturepositive outcomes. Public capital can help to mitigate project risk and catalyse private capital, especially for marginally bankable nature-related projects. We also need to combine financing with capacity building, technology transfer, and institutional support, to reduce risk and enhance the bankability of such projects. At the same time, financial institutions must dis-incentivise production processes that are harmful to biodiversity while ensuring equitable development. Third, strengthen the quality, availability, and comparability of nature-related data. Good-quality data enables effective allocation of capital towards transition finance, and combats greenwashing. Unlike climate risks, nature-related risks are often location-specific.

Ravi Menon: Bending the curve of nature loss Keynote remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore and Chair of the Network for Greening the Financial System, at the COP15 Finance and Biodiversity Day, Montreal, 14 December 2022. *** Ladies and gentlemen, I am honoured and delighted to be able to address you on this important occasion of COP15 of the Convention on Biological Diversity. The world is getting painfully acquainted with the impending climate crisis. There are promising efforts at mitigating this crisis, though far from what is necessary to avert disaster. But the planet faces a second crisis –– nature and biodiversity loss. The nature crisis is no less threatening than the climate crisis. But it is much less appreciated and much less is being done to mitigate it. We assiduously measure and seek to grow our physical and human capital. We speak of the importance of social and political capital. But we fail to appreciate let alone measure natural capital – the world's stock of natural resources, comprising soils, air, water, plants, animals, and minerals. These are assets that sustain our food supplies, underpin our economy and society, and enable human life. We are collectively depleting our natural capital and degrading the ecosystems that support it. We are consuming more resources than the Earth can produce in a year. At current rates of consumption, we use up 1.6 Earths' worth of resources. By 2050, our annual resource use will rise to 2 Earths' worth.