From Amazon to Pacific: How global nature finance breakthroughs set the stage for Australia's climate leadership

Institutional investors are treating natural capital as an investable asset rather than an externality.

Nature finance revolution gains momentum 

The most significant development came just recently when the European Union launched its "Roadmap towards Nature Credits" on July 7, creating a new market mechanism to channel private investment into biodiversity conservation. With EUR 65 billion needed annually for EU biodiversity investment alone, this initiative represents a fundamental shift toward putting "nature on the balance sheet," as European Commission President von der Leyen declared. The scheme allows companies to invest in measurable nature-positive actions like wetland restoration and forest expansion. 

Simultaneously, Pacific Island nations launched a landmark regional biodiversity finance programme, expanding the Global BIOFIN initiative to 15 countries including Fiji, Papua New Guinea, and Solomon Islands. This development underscores the growing recognition that small island states, despite their minimal contribution to global emissions, are leading the charge in nature-positive investments. 

Major investment firms are driving institutional momentum. In January BlackRock publicly acknowledged "natural capital" as a core asset class for the first time, while Goldman Sachs launched its Biodiversity Bond Fund in March, targeting $300-500 million for biodiversity protection and restoration. Norway's Government Pension Fund Global assessed nature-related risks across 90% of its $1.6 trillion portfolio, signalling that institutional investors are treating natural capital as an investable asset rather than an externality. 

The momentum extends to nature reporting and disclosure, where the Taskforce on Nature-related Financial Disclosures (TNFD) is advancing its next phase of work on nature-related data solutions. With more than 75% of investors now supporting mandatory nature-related disclosures, the foundation is being laid for transparent, accountable nature finance at scale. 

Brazil's Amazon-centred vision for COP30 

Brazil is positioning COP30 as a historic opportunity to place the Amazon at the centre of global climate action. With the forest storing 150-200 billion tonnes of carbon—equivalent to 15-20 years of global CO₂ emissions—Brazil's strategy recognizes that preventing Amazon collapse is essential to meeting Paris Agreement targets. The Brazilian presidency has outlined an ambitious six-axis action agenda, with "Stewarding Forests, Oceans, and Biodiversity" as a core pillar. 

Civil society organizations have delivered a comprehensive action plan to Brazil's government, calling for a global pact to mobilize $7 billion annually for Amazon protection. Their three-pillar strategy encompasses conservation finance, green and inclusive economy development, and capacity building with Indigenous peoples and local communities at the centre. Brazil's proposal for a Global Declaration for the Amazon and the Tropical Forest Forever Facility could mobilize up to $125 billion for tropical forests by 2030. 

Australia's moment to lead 

As Australia competes with Turkey to host COP31 in 2026, the nation faces a critical juncture. While South Australia has passed landmark biodiversity legislation—the first Australian environment law developed from the ground up in years—federal environmental law reform remains stalled, with an 18-month timeline that barely aligns with COP31 hosting responsibilities. 

Australia's bid to co-host COP31 with Pacific partners presents an unprecedented opportunity to amplify the voices of First Nations people and Pacific communities while positioning the nation as a leader in nature-positive finance. The country's developing Nature Repair Market and commitment to protecting 30% of land and marine areas by 2030 provide a foundation, but more ambitious action is needed. 

A call for urgent action 

The Australian government must seize this moment to demonstrate genuine climate leadership. First, accelerate federal environmental law reform to ensure robust nature-positive legislation is in place before COP31. Second, fast-track the Nature Repair Market to showcase innovative nature finance mechanisms that build on the EU's nature credits model and Brazil's Amazon strategy. Third, strengthen the integration of climate and nature considerations in all environmental decisions, moving beyond the current laws that critics say were "written to fail." 

Most importantly, Australia must position itself as the Asia-Pacific hub for nature finance creating a bridge between the groundbreaking European initiatives, Brazil's Amazon-focused approach, and the urgent needs of Pacific Island nations.  

Australia is well-positioned for a positive outcome in the COP31 hosting decision later this year, and the foundation for transformative action exists. 

The path from Brazil's Amazon COP30 to Australia's Pacific-partnered COP31 offers a unique opportunity to create a global nature finance ecosystem that brings lasting benefits for people and the planet, across continents and cultures. Australia must act decisively to ensure this opportunity is not lost.