Although green energy is recognised in a positive light from an environmental point of view, a careful analysis of its impact on nature is a crucial element in the development of new investments.
Biodiversity is the key word when carrying out such analyses, as its destruction directly and indirectly affects people – their health, life and economy. The disappearance of the habitats of many plant and animal species causes significant losses in various sectors of the global economy.
More than 50% of the global economy depends on an abundance of biodiversity. While biodiversity did not receive enough attention for many decades, nowadays we can see that the topic is being taken more and more seriously in the eyes of various organisations:
– Public authorities at the regional level (RDEP),
– National governmental authorities,
– European Union structures and global institutions (European Union Commission and United Nations),
– International financial institutes.
A natural consequence of this situation is the increased interest in the topic from entrepreneurs and consultant institutions.
Biodiversity risk covers many levels. Legal requirements in the field of nature are constantly changing, which makes the process of obtaining permits more challenging. Reputation-conscious financial investors cannot afford to finance any projects that do not comply with “good practice”. All of this leads to biodiversity being an important component of the EIA and an area of assessment under the ESDD.
All in all, one can mention the direct impact of a world changed by the loss of biodiversity on any investment, a first glimpse of which we saw in the pandemic situation. The loss of biodiversity means more disasters and an easier transfer of threats from the nature, to the world that we live in. Awareness of these changes, as well as the increasing demands of consumers (hence, banks and insurers), is forcing us to step up our game when it comes to approaching biodiversity.