Economics and policies for biodiversity: OECD's response

The OECD workshop, a joint initiative of the OECD Environment Directorate (ENV) and the Directorate for Financial and Enterprise Affairs (DAF), in collaboration with the International Network for Sustainable Financial Policy Insights, Research and Exchange (INSPIRE), aimed to facilitate knowledge sharing and discussions on the crucial issue of assessing biodiversity-related risks for the financial sector. In a context of deep uncertainty, the financial sector must take into account the risks and impacts associated with biodiversity loss and how it translates into financial risks. Each session delved into the challenges and limitations in order to shed light on the relationship between biodiversity loss and socio-economic loss, specifically with regards to the financial sector. The workshop also showcased innovative methods that are currently available for central banks and financial institutions to evaluate the financial risks, impacts, and dependencies associated with biodiversity loss. Additionally, the workshop delved into the ongoing challenges in translating biodiversity risks into financial risks and incorporating biodiversity loss into economic and financial risk management models.

The workshop gathered over 260 participants, including over 160 participants joining virtually on Zoom and 100 participants attending in-person at the OECD Headquarters. It was held under the Chatham House rule, with participants speaking on their personal capacity, which encouraged a very rich and open discussion. The workshop was held back-to-back with the OECD Committee on Financial Markets, and brought together a diverse group of stakeholders, including central banks, financial and environment ministries, financial market participants, methodology providers, academia, and civil society. The event aimed to equip central banks and policymakers with the technical knowledge and capacity to understand the economic and financial risks arising from biodiversity losses.

Agenda

Opening Session-Brief welcoming remarks

• Robert Patalano, Senior Counsellor, Directorate for Financial and Enterprise Affairs, OECD (Chair)
• Mathilde Mesnard, Deputy Director, Environment Directorate, OECD
• Simon Dikau, Research Director, INSPIRE; and Research Fellow, Grantham Research Institute on Climate Change and the Environment
  
  

Scene-setting presentation

• Dr Beccy Wilbore, Chief Science Officer, natcap research
  
  

Session 1. Science and Socio-Economic Case for Action on Biodiversity

Moderator

• Giulio Mazzone, Policy Analyst, Directorate for Financial and Enterprise Affairs, OECD
  
  

Icebreaker: interactive survey on the meaning of biodiversity risks

• Kris de Meyer, Director, UCL Climate Action Unit

Speakers

• Garry Peterson, Professor in environmental sciences, Stockholm Resilience Centre
• HyeJin Kim, Scenario developer, UK Centre for Ecology & Hydrology
• Ben Groom, Dragon Capital Chair of Biodiversity Economics, University of Exeter
• Katia Karousakis, Team Lead, Biodiversity, Environment Directorate, OECD
• Nina Seega, Director, Centre for Sustainable Finance, CISL
  
  

Session 2. Current Gaps in Assessing Biodiversity- or Nature-related Risks

Moderator

• Romain Svartzman, Senior Economist, Banque de France; and co-coordinator, Scenarios team, NGFS Taskforce on biodiversity loss and nature-related risks
  
  

Icebreaker: results of the interactive survey on the meaning of biodiversity risks

• Kris de Meyer, Director, UCL Climate Action Unit

Speakers

• Nicola Ranger, Director, Climate and Environmental Analytics, UK Centre for Greening Finance and Investment (CGFI), University of Oxford
• Etienne Espagne, Senior Climate Economist, World Bank Group
• Paolo Krischak, Green Finance Expert, Deutsche Bundesbank
• Nathalie Borgeaud, Lead, Financial Markets Engagement, Taskforce on Nature-related Financial Disclosures (TNFD)
  
  

Session 3. Emerging Approaches to Measure Biodiversity-related impacts and dependencies and Translate Biodiversity- and Nature-related Risks into Financial Risks

Moderator

• Riccardo Boffo, Policy Analyst, Directorate for Financial and Enterprise Affairs, OECD

Speakers

• Sebastian Bekker, Programme Officer, UNEP-WCMC, ENCORE
• Julien Calas, Research Officer, Agence Francaise de Développement (AFD)
• Jason Eis, Executive Director, Vivid Economics, and Partner, McKinsey & Company
• Justin Johnson, Assistant Professor, Department of Applied Economics, College of Food, Agricultural and Natural Resource Science, University of Minnesota

Discussants

• Chiara Colesanti Senni, Fellow, Council on Economic Policies, UZH
• Violette Pradère, Project Officer - Global Biodiversity Score for Financial Institutions, CDC biodiversité
  
  

Session 4. Priorities and next steps

Moderator         

• Geraldine Ang, Team Lead, Financial Sector for Biodiversity and Transition Minerals, OECD Environment Directorate

Speakers

• Ambassador Amélie de Montchalin, Permanent Representative of France to the OECD
• Serafin Martinez Jaramillo, Manager, Banco de Mexico; and Co-Lead, subgroup on scenarios, taskforce on nature-related risks, NGFS
• Robert Patalano, Senior Counsellor, Directorate for Financial and Enterprise Affairs, OECD
• Simon Dikau, Research Director, INSPIRE; and Research Fellow, Grantham Research Institute on Climate Change and the Environment

Discussants

• Dávid Papp, Head of Sustainable Finance Policy, Hungarian central bank Magyar Nemzeti Bank (MNB)
• Simon Zadek, Executive Director, Nature Finance