Over the past five decades, global wildlife populations have seen an alarming two-thirds decline, yet efforts to counter biodiversity loss remain woefully underfunded.
According to the Paulson Institute, up to US$700 billion is needed annually to achieve meaningful conservation outcomes, exposing a stark funding shortfall.
South Africa's Sustainable Finance Coalition (SFC), founded in 2019, is stepping in to bridge this gap by developing funding solutions for nature conservation and socio-economic upliftment across Africa.
The Sustainable Finance Coalition, co-founded by WWF South Africa and Wilderness Foundation Africa, uses tailored financial models to bring much-needed funds into conservation.
Candice Stevens, the Coalition’s co-founder and CEO, explains that the finance sector holds the resources to support nature, but effective financial mechanisms were missing.
“The finance sector has the money to achieve this, but what was needed was to find tailor-made financial solutions for nature,” Stevens said in a press release.
Backed by the WWF Nedbank Green Trust, which provided the initial “catalytic funding,” the Coalition is scaling conservation-focused financial initiatives across Africa. As of 2024, the SFC has incubated 11 solutions spanning 15 countries, with replication projects in 33 environments.
According to Justin Smith of WWF South Africa, the Coalition sets itself apart by “turning high-potential ideas into operational projects, creating long-term solutions for nature-based initiatives”.
The SFC aims to unlock US$500 million for protecting 100 million hectares of Africa’s biodiversity hotspots by 2030. This would also benefit over 100,000 local community members by enhancing sustainable livelihoods.
Through its “blue finance” incubators, the Coalition is expanding to marine conservation, having launched its first “Blue Outcomes Fund” in July 2024 to support ocean-based livelihoods and marine biodiversity.
The Coalition has launched Africa’s first inventory of finance solutions for conservation in collaboration with the African Leadership University. This online platform, launched in September 2024, will allow conservationists and funders across Africa to access tested finance models and resources.
Stevens noted that the Coalition's efforts have already channelled an estimated US$30 million into pilot projects, with ambitions to scale this amount to US$100 million.
In another innovative move, the Coalition is developing a biodiversity credit system, which could potentially allow corporations to buy biodiversity credits for nature-related financial reporting, similar to carbon credits.
A buyers’ round table held in Sandton in November 2023 has sparked significant interest from banks, asset management firms, and other stakeholders, suggesting a growing market for nature-linked credits.
IOL