MDB Common Nature Finance Taxonomy

This Common Nature Finance Taxonomy was developed by Multilateral Development Banks (MDBs) to identify nature finance in their portfolios. As defined by the MDB Common Principles for Tracking Nature Finance (Version 2, 2025), nature finance is finance contributing to the nature positive goal of halting and reversing nature loss and supporting the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF) through one or more of the following activity groups:

(a) Restoration and conservation of biodiversity or ecosystem services;

(b) Reduction of the direct drivers of biodiversity or ecosystem services loss;

(c) Integration of nature-based solutions across economic sectors; and

(d) Design and implementation of policy, tools, or other sectoral instruments enabling (a) to (c).

This Taxonomy provides a standardized non-exhaustive reference list of activities that qualify as nature finance in sectors and cross-cutting themes with identified opportunities to contribute to the GBF goals and targets (see Table 1). In addition to covering a range of sectors, the Taxonomy covers different ecosystem types and regions, and is adapted to the development context in which MDBs operate.

The nature finance activities listed in the Taxonomy are intended to go beyond compliance with the environmental and social (E&S) risk management policies and standards of MDBs. Finance that is used to ensure compliance with these E&S policies and standards does not qualify as nature finance.

In addition, nature finance, where feasible, should aim to deliver positive and inclusive social benefits, promote equitable access and benefit sharing with communities, reward stewardship and value traditional knowledge. The conservation, restoration, and sustainable management and use of nature can provide crucial social benefits, particularly for those who rely most on biodiversity and ecosystem services for their livelihoods and well-being.

For a more detailed definition of nature finance and guidance on assessment, see the MDB Common Principles for Tracking Nature Finance.