Abstract:

Background & Aim: With the adoption of the Kunming-Montreal Global Biodiversity Framework, resource mobilization has been elevated to a strategic priority in global biodiversity governance. China’s Biodiversity Conservation Strategy and Action Plan (2023–2030) explicitly sets the goal of “basically establishing a diversified investment and financing mechanism by 2030,” signaling a new stage in institutionalizing biodiversity finance. This paper aims to analyze China's biodiversity finance system through a structured lens, drawing on policy frameworks and practical experience to examine both domestic development and international innovations. 

Review Results: This study builds a framework linking policy support dimensions with financial instrument types to analyze China’s biodiversity finance system. It identifies five key policy areas shaping a mix of directive, incentive-based, and mandatory tools. Core instruments include green credit, green bonds, ecological compensation, blended finance, and asset-based financing. The paper also examines three emerging approaches and their implementation challenges. 

Recommendations: Based on the challenges above, the paper proposes several policy recommendations: establishing biodiversity investment and financing support catalog along with financial standards to reduce identification costs for investors, promote GEP and ecological performance-based financial products, and innovate models such as environmental asset collateral, blended finance, and EOD to strengthen support for biodiversity projects, and strengthening biodiversity-related risk management and information disclosure to enhance private sector investment confidence. Through these measures, the aim is to establish stable and sustainable financial flows, promoting biodiversity mainstreaming in economic, policy, and social domains.

Key words: Biodiversity Finance, Kunming-Montreal Global Biodiversity Framework, Resource Mobilization, Investment and financing model