An Overview of Nature-Related Risks and Potential Policy Actions for Ministries of Finance: Bending The Curve of Nature Loss

Governments, and Ministries of Finance (MoFs) in particular, manage critical levers for nature conservation, restoration, and sustainable use and have high risk exposure to nature loss. MoFs are the central government entity tasked with designing and executing core government economic and financial functions. This report provides an initial overview of how nature-related risks could affect the work and responsibilities of MoFs and focuses on economic and financial risks of nature loss, particularly those with potential fiscal implications. It summarizes global ongoing efforts to address nature-related risks, then provides a general overview of different nature-related risks and the transmission channels of fiscal and contingent liability risksthey could trigger for MoFs. The report concludes by identifying policy actions MoFs could take to mitigate and manage these risks.