Asia-Pacific institutions push for nature credit markets and biodiversity risk pricing

The Asian Development Bank (ADB) and the International Advisory Panel on Biodiversity Credits (IAPB) are increasing efforts to support nature credits within the Asia-Pacific region. This initiative comes as more countries express interest in helping to establish the regulatory framework for the market.

In Southeast Asia, capital markets are facing growing pressure to integrate biodiversity and nature loss into financial risk assessments. While current frameworks are largely focused on carbon, nature-dependent sectors are increasingly exposed to physical, transition, and liability risks related to forests, coastlines, and water systems. Financial institutions are currently navigating the gap between rising expectations—such as the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD)—and the availability of investable, nature-positive projects.