The Common Principles have been developed by the ten multilateral development banks (MDBs) participating in the MDB Nature Working Group. MDBs launched the first version of the Common Principles in 2023. These responded to the 2021 MDB Joint Statement on Nature, People and Planet, which recognized that tackling poverty, climate change and the drivers of nature loss are inextricably linked, and affirmed MDB commitments to further mainstream nature into their policies, analyses, assessments, advice, investments and operations. Among others, the Joint Statement outlined MDB commitments to tackle the drivers of nature loss by fostering nature finance and to develop methodologies to better track these investments across MDB portfolios.
The Kunming-Montreal Global Biodiversity Framework (GBF), a historic agreement adopted by 188 countries in 2022, calls for a whole-of-economy approach and emphasizes the need for financial flows from all sources to halt and reverse nature loss by 2030, with a view to full recovery by 2050. The framework’s four goals and 23 global targets reflect this and span actions aimed at reducing threats to biodiversity, including by conserving and restoring nature and reducing the direct drivers of nature loss across economic sectors; strengthening sustainable use and benefit-sharing to ensure nature meets societal needs; and enhancing the enabling actions, financing, and tools for effective implementation and mainstreaming. Nature finance provided by MDBs supports signatory countries in implementing their National Biodiversity Strategies and Action Plans (NBSAPs) and associated biodiversity finance plans, and helps scale private sector action that contributes to the GBF goals.
Therefore, the Common Principles have been strengthened in the context of GBF implementation. The updated Principles reflect (i) the importance of tracking the whole spectrum of MDB investments that are instrumental to the implementation of the GBF, including the economy-wide transformation that needs to happen; (ii) lessons learned by MDBs from piloting nature finance in their respective financial flows and tracking systems; and include (iii) a new MDB Common Nature Finance Taxonomy of eligible activities across sectors.