Unlocking green finance: Namibia’s financial sector gears up for biodiversity conservation

By Frida Frans, Biodiversity Finance Specialist

26-28 February 2025, Walvis Bay, Namibia - The urgency of integrating biodiversity conservation into Namibia’s financial and private sectors has never been more critical than it is today. As global attention conversation intensifies on the environmental challenges facing our planet, countries worldwide are increasingly recognizing the need to align financial and business practices with sustainability goals. From 26-28 February 2025, the UNDP’s Biodiversity Finance Initiative (BIOFIN) in Namibia hosted a training workshop in Walvis Bay, Erongo Region, bringing together key financial and private sector stakeholders to explore innovative financing mechanisms that promote environmental sustainability. The discussions underscored the vital role financial institutions and businesses play in shaping a greener economy.

Bernadette Shivute, BIOFIN Namibia Team lead

The workshop’s opening session underscored a common challenge: The financial sector stakeholders initially struggled to see the connection between their work and biodiversity conservation. However, structured discussions and real-world case studies facilitated a shift in perspective. Participants came to recognize the financial sector as a crucial enabler of sustainability through responsible investment, regulatory frameworks, and financial instruments such as green bonds and sustainability-linked loans.

Bruno Mweemba, UNDP Technical Advisor

The Ministry of Environment, Forestry, and Tourism of Namibia (MEFT) emphasized the role of financial actors in upholding environmental stewardship, while UNDP BIOFIN reiterated its commitment to fostering green finance integration. The BIOFIN methodology was presented as a structured approach to identifying and mobilizing resources for biodiversity conservation, ensuring alignment with global targets such as the Kunming-Montreal Global Biodiversity Framework.

Kristi Nghidinwa Conservation Scientist at the Ministry of Environment, Forestry, and Tourism of Namibia

Financial sector buy-in: challenges and opportunities

Namibia's financial sector was well represented at the workshop, with key institutions such as the Bank of Namibia, Bank Windhoek, AgriBank, Namibia Financial Institutions Supervisory Authority (NAMFISA), Nedbank, Development Bank of Namibia, Government Institutions Pension Fund (GIPF), Environmental Investment Fund of Namibia (EIF), and Triple Capital, alongside the Ministry of Environment and Tourism.  Discussions focused on critical issues while also highlighting the immense opportunities for reforming underwriting processes, strengthening risk frameworks, and introducing innovative green financial products and services. Some institutions have already incorporated climate considerations into their Environmental, Social, and Governance (ESG) frameworks. Participants also shared insights into their ongoing green finance initiatives, emphasizing the need for policy alignment to ensure that both government, Finance and private sector funding are effectively directed toward a unified biodiversity financing strategy.

Toini Amutenya Research and Communications Officer, Triple Capital

To fully capitalize on sustainable finance opportunities, it is essential to integrate robust corporate governance frameworks and align with global financial standards in biodiversity financing strategies. If not already in place, approaches such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Task Force on Nature-Related Financial Disclosures (TNFD) offer critical guidance on governance, strategy, risk management, and performance metrics. Additionally, financial reporting standards like the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and International Financial Reporting Standards (IFRS S1 & S2) play a key role in ensuring transparency and accountability in green finance. These frameworks and standards represent just one of many avenues through which stakeholders can unlock new financing streams and drive sustainable growth. As Bruno Mweemba aptly stated, “There is money out there, but only those with structured, strategic approaches can access it”.

A significant outcome of the workshop was the proposal to establish financing instruments for biodiversity in Namibia. Like many countries globally, Namibia BIOFIN is aiming to develop homegrown financial solutions to close the biodiversity finance gap. Among the presented proposed solutions for sustainable biodiversity financing were Namibia’s Protected Areas Trust Fund and the Environment Investment Endowment Fund. The EIF Endowment Fund, in particular, offers a promising opportunity for further exploration. Additional solutions need to be developed and tailored to the country's specific context and needs as BIOFIN advances.

Yvette Hausiku Business Development Officer EIF

From discussion to action

The BIOFIN training highlighted the importance of a strong business case for achieving financial sustainability in biodiversity conservation. The road ahead is extensive, requiring a thorough assessment of financing needs, alignment of proposals with national development plans, and early engagement with key sector stakeholders. Another crucial takeaway was the need to establish a national platform for mainstreaming green finance and fostering ongoing dialogue and innovation in the sector.

Through BIOFIN and similar initiatives, Namibia is positioning itself as a leader in sustainable finance, ensuring that economic growth goes hand in hand with environmental stewardship. As we move forward, the call to action is clear: it is time to move from strategy to implementation. Only by working together, we can build a resilient, biodiversity-rich Namibia for generations to come.