Multilateral Development Banks (MDBs) have introduced a Common Nature Finance Taxonomy to help identify and classify nature finance within their portfolios. This initiative aligns with the MDB Common Principles for Tracking Nature Finance (Version 2, 2025), which define nature finance as funding that supports efforts to halt and reverse nature loss, contributing to the implementation of the Kunming-Montreal Global Biodiversity Framework (GBF).
According to the taxonomy, activities that qualify as nature finance include restoration and conservation of biodiversity or ecosystem services, reducing direct drivers of biodiversity or ecosystem service loss, integrating nature-based solutions across economic sectors, and designing or implementing policies and tools that enable these actions.
The taxonomy offers a standardized but non-exhaustive list of activities considered as nature finance. It addresses various sectors, cross-cutting themes, different ecosystem types, and regions relevant to the development contexts in which MDBs operate.
MDBs recommend referring to the MDB Common Principles for Tracking Nature Finance for further details on definitions and assessment guidance.