International Development Association’s Twentieth Replenishment Mid-Term Review - Note on Nature Finance Tracking Methodology

Jul 19, 2026

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This note describes a technical methodology to identify, monitor, and track “nature-positive” investments supported by the International Development Association during the IDA20 mid-term review. It explains an inputs-based approach using a taxonomy and a process-based screening of projects after Board approval, aiming to capture contributions to biodiversity and ecosystem services and to support implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF). It also situates the approach alongside evolving outcome-oriented corporate tracking and scorecard development.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages17

Reading Time43 min

Introduction

IDA20 focus on green, climate-friendly development

Rationale for increased nature focus

World Bank role in implementing KMGBF

Purpose and scope of the technical methodology

Development of the technical methodology

Objective to identify committed finance supporting nature-positive goals

Public Disclosure Authorized Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION’S TWENTIENTH REPLENISHMENT MID-TERM REVIEW: NOTE ON NATURE FINANCE TRACKING METHODOLOGY IDA Participants requested that the World Bank develop a “methodology to identify, monitor, and track nature-positive World Bank investments in support of biodiversity and ecosystems services,”in line with the increased support for nature in the IDA20 special focus on green, climate-friendly development. By developing a robust inputs-based approach for identifying Nature Positive Finance within a broader Nature Finance umbrella, the methodology aims to capture contributions to nature and to the implementation of the Kunming-Montreal Global Biodiversity Framework (KMGBF) in a systematic manner and in a way that is tailored to the development context. The technical approach entails screening projects after Board approval with a combination of a taxonomy and process-based approach. The new direction of the World Bank’s corporate results strategy emerging from the Evolution process emphasizes a more outcome-oriented approach rather than input-based measures. As part of this process, the World Bank is currently developing a new Corporate Scorecard to help track outcomes in line with its renewed vision and mission. Scorecard indicators will be also embedded in the Global Challenge Programs, including on forests, nature, and biodiversity. Learning from the evolving approach to tracking Climate Finance, a shift towards outcomes-based tracking in Nature Finance is envisaged to measure impact better. Nevertheless, the methodology outlined in this note provides a feasible starting point to comprehensively identify the full breadth of the World Bank’s interventions, including critical efforts to mainstream nature across sectors, in support of the implementation of the KMGBF. Further guidance will need to be developed ahead of operationalization. I. INTRODUCTION 1. Under an overarching theme of “Building Back Better from the Crisis – Toward a Green, Resilient and Inclusive Future”, the 20th Replenishment of the International Development Association (IDA20) has stepped up support to client countries in overcoming their most pressing challenges, including climate change and nature loss. The IDA20 special focus on accelerating green, climate-friendly development is scaling up financing for climate action, naturebased solutions, and biodiversity. In addition to direct support, IDA20 includes a commitment to develop by mid-term review (MTR) a “methodology to identify, monitor, and track nature-positive World Bank investments in support of biodiversity and ecosystems services.”1 2. The increased focus on nature comes in response to analysis that shows the global biodiversity crisis poses serious risks to development and climate goals. Nature—understood as biodiversity and the services provided by healthy ecosystems—is in unprecedented decline, 1 This is one of two notes on tracking finance presented at IDA20 MTR. In parallel to this methodology, the IDA20 MTR will consider a note on crisis preparedness financing, which responds to the IDA20 commitment to track such finance under a cross-cutting theme of crisis preparedness and building resilience. threatening the global economy, and jeopardizing hard-won development gains and putting at risk the attainment of green, resilient, and inclusive development. Nature provides a lifeline to the poorest communities, particularly in coastal areas and near forests, buffering them from extreme climatic events and satisfying essential needs, including the provision of nutritious food, biomass for energy, medicine, and basic raw materials, ensuring a basic safety net and contributing directly to poverty alleviation and livelihoods. Nature also supports hundreds of millions of jobs directly in the forestry, fisheries, and nature-based tourism sectors. Natural ecosystems also serve as critically important carbon

FAQs

What is the goal of the proposed nature finance tracking methodology?

To identify, monitor, and track nature-positive World Bank investments that support biodiversity and ecosystem services, in line with the IDA20 mid-term review commitment and the KMGBF.

How does the methodology identify nature-positive finance?

It uses an inputs-based approach with a taxonomy combined with a process-based screening of projects after Board approval to systematically capture contributions to nature.

How is the methodology positioned relative to corporate scorecard and outcome-based tracking?

It acknowledges a corporate shift toward more outcome-oriented tracking through a new Corporate Scorecard, noting that nature finance tracking is moving toward measuring impact better, while this note provides a feasible starting point.

Jul 19, 2026

Upload by Himbo