Indigenous leaders call for funding, a UK deforestation law and a rebrand for nature investing – reflections from London Climate Action Week

Forests and their protection led the agenda during London Climate Action Week, as Indigenous leaders put their demands for direct funding before MPs and the UK government set out plans for deforestation due diligence laws.

Indigenous leaders make their demands heard

At eight o’clock on Monday morning outside the Houses of Parliament, Indigenous leaders from rainforest territories across Latin America, the Congo Basin and Indonesia gathered to begin their London Climate Action Week. And they had a clear call to action: climate finance must reach frontline forest stewards.

In a letter to the UK government, co-authored with the NGO Forest Coalition of which Global Canopy is a part, the Global Alliance of Territorial Communities (GATC) made three demands:

• Increase the proportion of UK forest and nature finance delivered directly to Indigenous Peoples and Local Communities (IPs and LCs) 
• Publicly disclose how much funding currently reaches IPs and LCs-led organisations and committing to annual reporting
• Establish regular and transparent dialogue with Indigenous Peoples leaders to remove barriers that prevent funding from reaching frontline forest stewards.

“We are asking you to move beyond recognising us as custodians of the forest and to ensure that recognition is reflected in practice, by allocating a proportion of the UK’s International Climate Finance as direct payments to Indigenous Peoples and local communities.”

GATC and NGO Forest coalition letter to the UK government

The GATC delegation continued to press its points in a series of meetings with leading politicians and civil servants, because as their letter made clear: “The stability of our ecosystems and the security of our rights are not separate from British interests; they are fundamental to them.”

A step closer to a UK deforestation law

London Climate Action Week also saw a welcome step forward from the UK government which finally announced plans to implement forest risk commodity regulations.

The laws to target illegal deforestation were promised four years ago in the Environment Act, but have never been laid before Parliament. Now the government has promised to consult businesses, civil society and international partners on their plans later this year.

Also positive was the pledge to align the laws with EU regulation, including eventually expanding to cover all deforestation, not just illegal deforestation. But there is still no definitive timeline. And as our Deputy Executive Director Helen Bellfield stated: “Each second of delay means more forests fall.”

Also vital for success is regulation of the finance sector. Our latest assessment of the 150 financial institutions that provide the most finance to Forest 500 companies shows 59% are still without a deforestation policy. 

But swift government action can change that and make the UK a sustainable finance centre. Once the UK company regulations are signed into law, a deadline is triggered for the review of the adequacy of existing financial regulations. HM Treasury need not wait for the trigger, however – we urge a review as soon as possible. 

“The impetus to act decisively is missing for most of the sector. Policy and regulatory leadership is needed to drive change across the finance sector by creating a level playing field.”

Pei Chi Wong, Global Canopy Finance Sector Engagement Lead

A rebrand for nature investing with The Little Book of Nature Business

For too long, investment and business opportunities that can benefit nature have had a very narrow focus. But The Little Book of Nature Business – which passed the 2,000 download mark during London Climate Action Week – challenges those perceptions by offering a simple, inspirational guide to investing in a future nature-positive economy. 

HSBC’s Director of Global Sustainability Strategy, Susannah Fitzherbert-Brockholes told the Climate Innovation Forum: “We use The Little Book of Nature Business to identify real life examples of what financing nature actually looks like. Go and look at the Little Book of Nature Business, and the TNFD and the World Economic Forum, there is some fantastic literature that can really bring to life what the opportunities are.”

“We need a rebrand about what nature investing means. Asset managers think nature is bees, trees and farmers. But if you take nature out of a product – do you still have a product?”

The Little Book of Nature Business author Andrew Mitchell speaking at a Natcap event at LCAW

Unlocking the potential of private wealth

Private finance and particularly private wealth has the potential to play a critical role in the transition towards a nature-positive financial system. Investment in activities that harm nature dwarfs that of investment that protects nature. 

Private capital – projected to reach nearly US $18 trillion per year – has massive potential to address the vast nature funding opportunity. So in London we brought together representatives across the private wealth ecosystem, including impact investors, family offices and grant making foundations.

What became clear was that private wealth holders have a real appetite to invest in long-term stability and shape new solutions. They have freedom to take risks, innovate, and influence institutional capital. But they need help. Nature investing must be made accessible, discussion has to move from simple profit to include impact, and tangible examples of success have to be shared.

“By convening a Nature-Positive Finance Champion network, we will motivate, enable and support private wealth holders to spearhead solutions that mobilise private capital at scale into credible nature-related opportunities.”

Alexandra Pinzon-Torres, Global Canopy’s Nature-Positive Finance Lead

London Climate Action Week took place in the midst of a record-breaking heatwave. Physical climate and nature risks materialised as threats to life and financial stability all around us: an unprecedented red weather warning, schools and hospitals under pressure and transport disrupted.  For leading companies, financial institutions, investors and governments, it was a real world example of the need for immediate climate and nature action.