{"id":11205,"date":"2026-10-21T16:30:47","date_gmt":"2026-10-21T09:30:47","guid":{"rendered":"https:\/\/www.tuk.or.id\/?p=11205"},"modified":"2026-10-20T15:49:51","modified_gmt":"2026-10-20T08:49:51","slug":"forests-finance-assessment-financial-regulators-fail-to-turn-biodiversity-commitments-into-binding-rules","status":"publish","type":"post","link":"https:\/\/www.tuk.or.id\/en\/2026\/10\/forests-finance-assessment-financial-regulators-fail-to-turn-biodiversity-commitments-into-binding-rules\/","title":{"rendered":"Forests & Finance Assessment: Financial Regulators Fail to Turn Biodiversity Commitments into Binding Rules"},"content":{"rendered":"

Global review of 11 strategically important financial jurisdictions finds no comprehensive restrictions on financing deforestation and ecosystem conversion ahead of UN biodiversity summit<\/em><\/p>\n

YEREVAN, Armenia \u2014 October 21, 2026<\/b> \u2014 Four years after governments agreed to align public and private financial flows with global biodiversity goals, a new assessment finds that major financial jurisdictions have yet to translate those commitments into binding rules capable of stopping finance for deforestation and ecosystem destruction.<\/span><\/p>\n

The report, <\/span>Regulating Finance for Biodiversity: An Assessment for the Global Biodiversity Framework 2026<\/span><\/i><\/a><\/i>, examines financial regulation in 11 jurisdictions that play a strategically important role in the financing of forest-risk industries: Brazil, Canada, the Central African Economic and Monetary Community, China, the European Union, Indonesia, Japan, Malaysia, Singapore, the United Kingdom and the United States.<\/span><\/p>\n

Across the three criteria applied in each of the 11 jurisdictions, none achieved the report\u2019s highest green rating: 30 of the 33 ratings were red or dark red and only three were yellow. Most strikingly, the researchers found that no jurisdiction comprehensively prohibits banks or investors from financing companies involved in deforestation or the conversion of natural ecosystems.<\/span><\/p>\n

The findings are being released as governments meet in Yerevan for COP17 of the UN Convention on Biological Diversity, the halfway point between adoption of the Kunming-Montreal Global Biodiversity Framework in 2022 and its 2030 targets.<\/span><\/p>\n

\u201cGovernments made a commitment to align finance with global biodiversity goals, but that promise has failed to reach the rules governing banks and investors,\u201d said Merel van der Mark, Forests & Finance Coalition Coordinator. \u201cFinancial institutions are increasingly being asked to disclose nature-related risks, but they are still largely free to finance the destruction those disclosures describe. Transparency matters, but disclosure without rules governing where money flows will not stop deforestation.\u201d<\/span><\/p>\n

The Global Biodiversity Framework\u2019s Target 14 calls on governments to progressively align public and private financial flows with its goals and targets. The new report, by the Forests & Finance Coalition, examines whether financial regulation is beginning to deliver on that commitment.<\/span><\/p>\n

It finds a wide gap between international biodiversity pledges and the rules governing lending and investment. While biodiversity is appearing more frequently in financial disclosure frameworks, taxonomies and risk-management policies, binding requirements affecting entire financial portfolios remain rare.<\/span><\/p>\n

Among the report\u2019s key findings:<\/span><\/p>\n