The decisions made by the UK government in the coming years will have a knock-on effect which echoes into the future, having a profound impact not just nationally, but globally. It is essential that the UK becomes a leader in the effective integration of nature risks and opportunities into financial markets. This requires an avenue for focussed, cross-party engagement with these topics within parliament, which the APPG provides.

Compared to climate, the relationship between private finance and nature is still a nascent policy area. Despite its nascency, there is an increased awareness on the importance of the issue - David Lammy has described biodiversity loss as a “more fundamental threat” than terrorism to the nation. On the economic side, the UK’s dependence on nature could lead to an estimated 12% reduction to GDP in the years ahead – larger than the hit to GDP from the global financial crisis or Covid-19. There is a need for a comprehensive platform which works towards:

1. A better understanding of the impact and dependency of finance on nature

2. Minimising the harm to nature flowing from the financial system and

3. Mobilising private finance into nature-positive projects, and to help the UK meet its international nature commitments. On this final point, there is a huge financial opportunity associated with transitioning to a nature-aligned economy, which the government can play a crucial role in unlocking.