When Climate Finance Meets Nature Finance: Why Asia’s Moment is Now

The world has grown accustomed to talking about climate finance. Net-zero roadmaps, carbon markets, and renewable energy deals dominate the sustainability landscape. Yet even as trillions flow into decarbonization, the other half of our planetary crisis—biodiversity loss—remains underfinanced, underprioritized, and dangerously overlooked.

That is beginning to change. A quiet but powerful shift is underway: nature finance is emerging as the next frontier. If climate finance was the first act of the sustainability era, nature finance is the sequel we cannot afford to miss.

Beyond Carbon’s Single Metric

Carbon taught us something invaluable: markets can mobilize capital at scale when metrics are clear. But carbon’s simplicity—tons of CO₂ avoided—doesn’t translate neatly to the richness of ecosystems. Forests, rivers, soils, and coral reefs cannot be reduced to a single unit. Nature demands something more complex, more contextual, and more grounded in place.

This is where mechanisms like biodiversity credits (biocredits) come in. Instead of offsetting damage, biocredits represent positive investment in restoring ecosystems and strengthening biodiversity. Pilots are sprouting in Latin America, Africa, and Europe, supported by global frameworks such as the Biodiversity Credit Alliance (BCA), the Taskforce on Nature-related Financial Disclosures (TNFD), and the Science Based Targets Network (SBTN). Together, they are building the architecture for a future where investing in nature is as mainstream as investing in clean energy.

Cathay FHC’s Action on Nature

One of the most compelling stories in this shift is coming from Taiwan. At Climate Week NYC 2025, Cathay Financial Holdings (Cathay FHC) stood out as the only Taiwanese financial institution at the World Climate & Biodiversity Summit. Chief Investment Officer Sophia Cheng reminded global peers of a simple but powerful truth: “A decade of practice shows that sustainability strengthens—rather than weakens—profitability.”

Beyond financing, Cathay FHC is walking the talk—helping design projects and build models others can follow. From pioneering biodiversity credit methodologies with National Taiwan University Experimental Forest, to backing blended finance platforms like ASCENT initiative, to championing soil health innovations that value the ground beneath our feet as one of the most overlooked climate assets, Cathay FHC is showing what it means to weave nature directly into the fabric of finance.” This is not box-ticking ESG. It is an attempt to hardwire nature into finance.

Why Asia, Why Now

Asia holds extraordinary biodiversity, from the Amazon-like rainforests of Borneo to Taiwan’s subtropical foothills. At the same time, it houses some of the fastest-growing demand for ESG-aligned investment. The paradox? Policies and capacity often lag behind ambition.

This gap is also an opening. By pioneering credible methodologies and forging regional alliances, such as the Asian Biodiversity Credit Alliance (ABCA), institutions like Cathay FHC can position Asia not as a follower, but as a leader in nature finance. Taiwan, often overlooked in global forums, is proving it can innovate not just in technology, but in ecological finance.

From New York to Belém

As the world looks toward COP30 in Belém, Brazil, the question is no longer whether biodiversity finance will matter, it’s whether it can scale in time. Sophia Cheng has laid out a simple playbook: commit to at least one investable project, leverage blended finance to multiply impact, and ensure the transition is just, delivering benefits for people as well as the planet.

It’s easy to be cynical about finance. But it’s also true that without it, nature will remain a charity case rather than an investable future. Cathay FHC is showing that in Asia, the tide is turning. Profit and planet can reinforce each other—and when they do, we get not just markets, but momentum. The age of nature finance has arrived. The only question is: who will lead?

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Cathay Financial Holdings (Cathay FHC) is one of the largest financial groups in Taiwan, with a significant presence across Greater Asia. The company provides a comprehensive range of financial services through its subsidiaries, encompassing life and property insurance, banking, securities, asset management, and venture capital. Listed on the Taiwan Stock Exchange (TWSE: 2882), Cathay FHC is committed to integrating sustainability into its core strategy, focusing on responsible investments, promoting green finance, and managing environmental, social, and governance (ESG) risks to ensure long-term value creation and contribute to a sustainable future.