ADB launches biodiversity bond, incubator, and tracking report at COP17

The Asian Development Bank (ADB) announced on 27 October 2026 a major push to expand financing for nature conservation and restoration, unveiling a new biodiversity bond, an investment incubator, and a joint multilateral development bank (MDB) report to strengthen tracking of nature finance. The initiatives were introduced at the 17th meeting of the Conference of the Parties (COP17) to the Convention on Biological Diversity in Yerevan, Armenia, according to a press release. Together, the three measures aim to channel more private capital into protecting ecosystems across Asia and the Pacific.

Asia and the Pacific is home to 75% of the world’s coral reefs and 17 of its 36 biodiversity hotspots. Its natural ecosystems provide food, fresh water, and livelihoods vital to more than 4.7 billion people. However, these resources face growing threats, and the world faces an estimated $1.3 trillion annual shortfall in financing to protect and restore nature. The new initiatives seek to help close this gap through targeted financial tools and improved reporting standards.

As chair of the MDB Nature Heads Group, ADB led other development banks in launching a joint report on their progress in tracking nature finance and incorporating nature into their investment strategies and results frameworks. The report draws on the MDB Common Principles for Tracking Nature Finance, the Common Nature Taxonomy, and the Guide on Results Metrics. ADB also launched the Nature Bond Incubator, which will help governments and businesses develop conservation and restoration projects capable of attracting private investment through technical advice on project development, bond structuring, and investor engagement. The incubator is part of the ADB-led Nature Solutions Finance Hub, which aims to generate at least $5 billion in nature financing by 2030.

ADB also issued a new 3-year Biodiversity and Nature Theme Bond of about $50 million, arranged by Crédit Agricole CIB, which will finance projects that conserve and restore ecosystems, reduce biodiversity loss, and use nature-based solutions in agriculture, water management, coastal resilience, and urban development. The incubator builds on ADB’s support for Thailand’s $750 million sustainability-linked bond issued in September, the first sovereign bond of its kind in Asia and the Pacific to include a nature conservation target.

“Nature sustains our economies, yet the world is investing far too little to protect it,” said ADB President Masato Kanda. He added that “at COP17, ADB is taking concrete steps to bring more investment into nature conservation and restoration.”

Issued under ADB’s Theme Bonds for Sustainable Development program, the new bond will help channel investment toward protecting the coastlines, farmland, and water supplies on which millions of people across Asia and the Pacific depend. It is ADB’s second biodiversity and nature theme bond since 2024. Thailand’s bond links the country’s borrowing to national commitments that include conserving and managing at least 30% of its land and inland waters by 2030. Founded in 1966, ADB is owned by 69 members, 50 of which are from the region. The bank continues to pair financial innovation with partnerships to safeguard the natural foundations of growth across Asia and the Pacific.