Closed

Biodiversity, economics and finance: Understanding macro-financial risks associated with biodiversity loss

HORIZON Research and Innovation Actions

Basic Information

Identifier
HORIZON-CL6-2024-BIODIV-01-4
Programme
Biodiversity and ecosystem services
Programme Period
2021 - 2027
Status
Closed (31094503)
Opening Date
October 16, 2023
Deadline
February 21, 2024
Deadline Model
single-stage
Budget
€4,000,000
Min Grant Amount
€2,000,000
Max Grant Amount
€2,000,000
Expected Number of Grants
2
Keywords
HORIZON-CL6-2024-BIODIV-01-4HORIZON-CL6-2024-BIODIV-01Biodiversity conservationClimate change adaptationClimate change mitigationEconomics of innovationEnvironmentFinanceInsurance & FinanceInvestment readinessMacroeconomicsNatural resources and environmental economicsNatureNature-based solutionsPrivate investmentRisk assessmentSocial economicsSustainable development and nature protection

Description

Expected Outcome:

In line with the European Green Deal priorities and in particular with the EU biodiversity strategy for 2030 and the EU strategy for financing the transition to a sustainable economy, the successful proposal(s) will help unlock financial flows needed for reversing biodiversity loss, and contribute to mainstreaming biodiversity, ecosystem services and natural capital in the society and economy.

Project results are expected to contribute to all of the following expected outcomes:

  • New knowledge to accelerate the ecological transition and socioeconomic transformation towards nature-positive economy across EU, in a context of erosion of natural capital and degradation of ecosystems and their essential services;
  • Enhanced understanding and quantification of the macroeconomic significance of biodiversity and implications of its loss at EU level as a basis for more coordinated and better organised responses by key economic actors and institutions, including key policy making processes (e.g., EU semester);
  • Information, tools and metrics to better integrate biodiversity and its loss into mainstream macro-financial analytical frameworks, risk assessment and management methods as a basis for enhancing natural capital and NBS;
  • Development of more comprehensive and more robust environmental risk management in the financial sector;
  • Mobilisation of mainstream finance to slow down, and reverse biodiversity loss in the broader context of environmentally sustainable development by catalysing nature-positive investments contributing to the objectives of the European Green Deal;
  • Evidence base to support the implementation of the EU strategy for financing the transition to a sustainable economy.
Scope:

The erosion of natural capital combined with the collapse of ecosystems entails potentially far-reaching economic and financial implications, including risks for macroeconomic and financial stability of key institutions, countries and regions. The decline of ecosystem services poses physical risks for economic and financial actors that depend upon those services, while socioeconomic transformations could trigger transition risks. As more than half of the world's GDP relies on nature[1], it is estimated that the risks triggered by ecosystem degradation to human societies could be at least as high as those imposed by climate change. Furthermore, these risks are growing as biodiversity is declining at unprecedented rates in human history, which calls for improved understanding, assessment and risk management approaches by key economic actors such as corporates, governments, central banks and financial supervisors. However, a wide range of challenges, including the complexity of ecosystem processes, uncertainty about tipping points and valuation problems, make it very difficult.

Actions should improve the state-of-art knowledge on the relationships between biodiversity, economy and the financial system including better understanding of the nature and degree of risks associated to biodiversity loss, how these risks interact with each other and are likely to evolve over time.

In particular, actions are expected to:

  • Expand the evidence base on the dependence of the EU economy and its financial sector on nature, including by producing relevant macroeconomic indicators, e.g., assessing the share of the EU GDP and employment that depends on nature and evaluate implications of biodiversity loss. As much as possible, research should also extend to country level analysis and/or prepare the ground for future more in-depth studies with increased geographical resolution.
  • Develop scenarios tailored to financial risk assessment, including identification of assets under highest risk from being stranded and sectors that represent the highest risk exposure.
  • Co-design principles for a more comprehensive and more robust environmental risk management in the financial sector, develop innovative methodologies and tools to support risk assessment that can better capture the specificities of nature and ecosystems.
  • Explore tools to assess the alignment of corporates and financial institutions with major European and global biodiversity-related goals, including by leveraging of the EU Taxonomy on Sustainable Finance.
  • Investigate how biodiversity loss interacts with climate change and other socio-environmental challenges in regard of macro-financial stability and how different risks can reinforce each other.
  • Identify possible response options and issue recommendations for EU institutions and Member States, investors, companies and other financial market participants about macro-financial risks of biodiversity loss.

In their research, actions should investigate various possible risk categories including both physical and transition ones, their transmission channels and cascading effects through sectors and supply chains, as well as adaptive capacity of economic and financial agents/institutions, with particular focus on the EU, its Member States and Horizon Europe Associated Countries. The analysis should extend to worst-case scenarios and include low-probability but high-impact biodiversity-related tail risks.

Actions should build on and/or establish synergies with the relevant work by initiatives/projects/studies including, but not limited to, the World Economic Forum’s New Nature Economy Report Series[2], Network for Greening the Financial System[3], Taskforce on Nature-related Financial Disclosures[4], The Finance for Biodiversity (F4B) initiative Accounting for ecosystems and their services in the European Union (INCA)[5] and EU Member States (MAIA)[6] projects, Indebted to Nature report[7] and the working paper ‘A “Silent Spring” for the Financial System? Exploring Biodiversity-Related Financial Risks in France’[8].

Actions are expected to involve and co-create with the end-users (financial institutions, non-financial corporations, governments etc.) to fully account for their respective views and needs. Actions should bring together from the start multiple types of scientific expertise in social sciences and humanities, in particular in economics and finance, as well as scientific expertise in biodiversity and natural capital.

Actions should envisage clustering activities with projects funded under this topic as well as with other relevant Horizon Europe and Horizon 2020 projects working on links between biodiversity and sustainable finance and economics of biodiversity[9]. To this end proposals should foresee dedicated tasks and appropriate resources for coordination measures, joint activities, and joint deliverables.

[1] Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy | World Economic Forum (weforum.org).

[2] https://www.weforum.org/reports/new-nature-economy-report-series

[3] https://www.ngfs.net/en

[4] https://tnfd.global/

[5] https://ec.europa.eu/eurostat/documents/7870049/12943935/KS-FT-20-002-EN-N.pdf/de44610d-79e5-010a-5675-14fc4d8527d9?t=1624528835061

[6] https://maiaportal.eu/about

[7] https://www.dnb.nl/en/general-news/2020/indebted-to-nature/

[8] https://publications.banque-france.fr/en/silent-spring-financial-system-exploring-biodiversity-related-financial-risks-france

[9] Notably Horizon Europe projects Invest4Nature and projects resulting from the calls: “H HORIZON-CL6-2023-BIODIV-01-10: Build up of knowledge on Nature Positive Economy and supporting its scale-up”.

Destination & Scope

The biodiversity and ecosystem services destination of the 2023-2024 Cluster 6 work programme will support R&I for the EU environment and biodiversity protection framework and the European Green Deal. It is based on the vision developed in the EU biodiversity strategy for 2030 and will support its implementation, furthering the orientations of the 2021-2022 work programme. It will also take into account new European Green Deal initiatives, notably i) the EU forest strategy for 2030[1], ii) the EU action plan: “towards zero pollution for air, water and soil”, iii) the EU climate adaptation strategy and iv) the EU soil strategy for 2030. Connections are expected to be made with the EU proposal for a nature restoration law[2], which includes binding targets, and environmental reporting, and the new approach for a sustainable blue economy in the EU[3].

It will support R&I activities that help maintain ecosystems in good ecological condition and a clean and healthy environment for the EU, including water, soil and air. This will contribute to the implementation of relevant policies such as health, climate adaptation and mitigation, disaster risk reduction, sustainable circular bioeconomy and blue economy. The R&I activities will also reflect the strong interconnections between, e.g. the EU biodiversity strategy for 2030[4] and the farm to fork strategy[5], as well as the pollinators initiative[6].

R&I supported under this destination will ensure that mainstreaming biodiversity in society and the economy takes into account justice, fairness and global aspects. This is to ensure the "just transition" emphasised in the European Green Deal is achieved.

R&I activities supported by Cluster 6 will complement and ensure synergies with activities supported under several Horizon Europe partnerships, in particular: i) the European biodiversity partnership Biodiversa+; ii) the European partnership water security for the planet “Water4All”; iii) the European partnership on accelerating farming systems transition: agroecology living labs and research infrastructures; iv) the European partnership on animal health and welfare and; v) the European partnership for a climate-neutral, sustainable and productive blue economy. R&I activities should also specifically address the strong interconnections between biodiversity and the emergence of infectious diseases by complementing the activities of with the European partnership for pandemic preparedness and the European Partnership for One Health/AMR Antimicrobial Resistance (AMR).

Synergies will also be ensured with the following Horizon Europe missions: “Restore our ocean, seas and waters by 2030”, “A soil deal for Europe” and “Adaptation to climate change”.

Projects supported under this destination are expected, where appropriate, to provide timely scientific contributions to major science-policy bodies such as the Intergovernmental science-policy Platform on Biodiversity and Ecosystem Services (IPBES)[7], the Intergovernmental Panel on Climate Change (IPCC), and the Convention on Biological Diversity. They are also expected to cooperate with the Science Service project Bio-agora. Where appropriate, the following existing platforms and information-sharing mechanisms should be used for dissemination and exploitation: the EC Knowledge Centre for Biodiversity[8], Biodiversity Information System for Europe (BISE)[9], and Oppla[10].

This destination will also help achieve the twin green and digital transitions. Where relevant, advantage will be taken of the development and use of advanced digital technologies.

This destination will continue to support the EU leadership in the relevant international fora in line with the Commission priority “A stronger Europe in the world” and international cooperation will be key to addressing global challenges in many topics in this destination. The EU's outermost regions (defined in article 349 TFEU), where biodiversity is high and threats multiply, should be given special consideration.

Expected impact

Proposals for topics under this destination should set out a credible pathway resulting in the strategic plan having the following impact: "Biodiversity is back on a path to recovery, and ecosystems and their services are preserved and sustainably restored on land, inland water and at sea through improved knowledge and innovation". More specifically, one or more of the following impacts should materialise:

  • Direct drivers of biodiversity decline will be understood and addressed – land and sea use change, natural resource use and exploitation, climate change, pollution, invasive alien species – as well as indirect drivers – demographic, socio-economic, technological, etc.
  • Protected areas and their networks will be planned, managed and expanded and the status of species and habitats will be improved based on up-to-date knowledge and solutions.
  • Biodiversity, ecosystem services and natural capital will be mainstreamed in the society and economy: e.g. they will be integrated into public and business decision-making; approaches for enabling transformative changes to tackle societal challenges will be built including by deploying nature-based solutions (NBS).
  • Practices in agriculture, forestry, fisheries and aquaculture will be developed and improved to support and make sustainable the use of biodiversity and a wide range of ecosystems services.
  • Biodiversity research and support policies and processes will be interconnected at EU and global levels, making use of advanced digital technologies and societal engagement where appropriate.
  • The biodiversity and health nexus will be understood, in particular at the level of ecosystems. This will be achieved by using the one-health approach, in the context of climate change and globalisation and by addressing contributions and trade-offs.

The impacts have been revised compared with the 2021-2022 work programme in order to take into account R&I activities included in the 2021-2024 strategic plan, but that are yet to be addressed. This was the case, for instance, for several direct drivers of biodiversity loss. The new drafting of the impacts makes clear that they are within the scope of the work programme.

[1] Communication COM/2021/572: New EU Forest Strategy for 2030

[2] Proposal for a Regulation of the European Parliament and of the Council on nature restoration, COM(2022) 304 final, 22.06.2022

[3] Communication COM/2021/240: on a new approach for a sustainable blue economy in the EU Transforming the EU's Blue Economy for a Sustainable Future

[4] Communication: EU Biodiversity Strategy for 2030

[5] Communication: Afarm to fork Strategy for a fair, healthy and environmentally-friendly food system

[6] https://ec.europa.eu/environment/nature/conservation/species/pollinators/policy_en.htm

[7] https://ipbes.net/policy-support

[8] https://knowledge4policy.ec.europa.eu/biodiversity_en

[9] https://biodiversity.europa.eu/

[10] https://oppla.eu/

Eligibility & Conditions

General conditions

General conditions

1. Admissibility conditions: described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes

Proposal page limits and layout: described in Part B of the Application Form available in the Submission System

2. Eligible countries: described in Annex B of the Work Programme General Annexes

A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.

3. Other eligibility conditions: described in Annex B of the Work Programme General Annexes

4. Financial and operational capacity and exclusion: described in Annex C of the Work Programme General Annexes

  • Award criteria, scoring and thresholds are described in Annex D of the Work Programme General Annexes

  • Submission and evaluation processes are described in Annex F of the Work Programme General Annexes and the Online Manual

  • Indicative timeline for evaluation and grant agreement: described in Annex F of the Work Programme General Annexes

6. Legal and financial set-up of the grants: described in Annex G of the Work Programme General Annexes

 

Specific conditions

7. Specific conditions: described in the [specific topic of the Work Programme]

 

Support & Resources

Online Manual is your guide on the procedures from proposal submission to managing your grant.

Horizon Europe Programme Guide contains the detailed guidance to the structure, budget and political priorities of Horizon Europe.

Funding & Tenders Portal FAQ – find the answers to most frequently asked questions on submission of proposals, evaluation and grant management.

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CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk – the European Standards Organisations advise you how to tackle standardisation in your project proposal.  

The European Charter for Researchers and the Code of Conduct for their recruitment – consult the general principles and requirements specifying the roles, responsibilities and entitlements of researchers, employers and funders of researchers.

Partner Search Services help you find a partner organisation for your proposal.

 

Latest Updates

Last Changed: July 16, 2024

CALL UPDATE: FLASH EVALUATION RESULTS

 

EVALUATION results

Deadline: 22/02/2024

Available budget:



Topic ID

Topic short name

Types of action

Budget (EUR M)

HORIZON-CL6-2024-BIODIV-01-1

Invasive alien species

HORIZON-IA

12,00

HORIZON-CL6-2024-BIODIV-01-2

Digital for nature

HORIZON-IA

16,00

HORIZON-CL6-2024-BIODIV-01-3

Dependence of society and the economy on pollinators

HORIZON-RIA

13,00

HORIZON-CL6-2024-BIODIV-01-4

Biodiversity, economics and finance: Understanding macro-financial risks associated with biodiversity loss

HORIZON-RIA

5,00

HORIZON-CL6-2024-BIODIV-01-5

Transformative action of policy mixes, governance and digitalisation addressing biodiversity loss

HORIZON-RIA

4,00

HORIZON-CL6-2024-BIODIV-01-6

Promoting pollinator friendly farming systems

HORIZON-RIA

6,00

HORIZON-CL6-2024-BIODIV-01-7

Reintroduction of landscape features in intensive agricultural areas

HORIZON-RIA

5,00

HORIZON-CL6-2024-BIODIV-01-8

Conservation and protection of carbon-rich and biodiversity-rich forest ecosystems

HORIZON-RIA

12,00

HORIZON-CL6-2024-BIODIV-01-9

Selective breeding programme for organic aquaculture

HORIZON-RIA

3,00

 

The results of the evaluation for each topic are as follows:

Topic ID

Number of proposals submitted (including proposals transferred from or to other calls)

Number of inadmissible proposals

Number of ineligible proposals

Number of above-threshold proposals

HORIZON-CL6-2024-BIODIV-01-1

15

0

0

6

HORIZON-CL6-2024-BIODIV-01-2

30

0

1

16

HORIZON-CL6-2024-BIODIV-01-3

4

0

0

2

HORIZON-CL6-2024-BIODIV-01-4

6

0

0

4

HORIZON-CL6-2024-BIODIV-01-5

3

0

1

2

HORIZON-CL6-2024-BIODIV-01-6

5

0

0

3

HORIZON-CL6-2024-BIODIV-01-7

8

0

0

5

HORIZON-CL6-2024-BIODIV-01-8

15

1

0

9

HORIZON-CL6-2024-BIODIV-01-9

5

2

0

1

 

Summary of observer report:

This summary report describes the observers´ assessment of the evaluation of the single stage proposals of the following calls: HORIZON-CL6-2024-BIODIV-01, HORIZON-CL6-2024-CIRCBIO-01 and HORIZON-CL6-2024-ZEROPOLLUTION-01. The observers analysed the efficiency of the procedures, usability of the instruments (including IT tools), conduct and fairness of the evaluation sessions, and compliance with the applicable rules. Overall, 185 independent expert evaluators were assigned to this evaluation. The fully remote individual evaluation by independent experts followed by consensus meetings was observed to be both efficient and appropriate. The briefings and the material sent to experts beforehand was found excellent. In general, the consensus was well reached during consensus meetings. All the proposals were evaluated and treated according to the EU Commission rules and guidelines. The highest degree of confidentiality was maintained. The evaluation was conducted in full conformity with the published procedures and according to the applicable rules. The compliance with the rules was systematically emphasised during all stages of evaluation. The significance of confidentiality and the conflict of interest were highlighted in several stages of the evaluation. No deviations from these rules and procedures were observed. In general, the entire evaluation was very well organised and executed, and there were no issues which would require major adjustments. The process was observed to be transparent and fair, and the final scoring and ranking properly reflected the value of the proposals. We recently informed the applicants about the evaluation results for their proposals.

For questions, please contact the Research Enquiry Service.

Last Changed: February 28, 2024

CALL UPDATE: PROPOSAL NUMBERS

 

PROPOSAL NUMBERS

Call HORIZON-CL6-2024-BIODIV-01 has closed on February 22.

91 proposals have been submitted.

The breakdown per topic is:Topic Id Proposals Received

HORIZON-CL6-2024-BIODIV-01-1         15

HORIZON-CL6-2024-BIODIV-01-2         30

HORIZON-CL6-2024-BIODIV-01-3         4

HORIZON-CL6-2024-BIODIV-01-4         6

HORIZON-CL6-2024-BIODIV-01-5         3

HORIZON-CL6-2024-BIODIV-01-6         5

HORIZON-CL6-2024-BIODIV-01-7         8

HORIZON-CL6-2024-BIODIV-01-8         15

HORIZON-CL6-2024-BIODIV-01-9         5

Evaluation results are expected to be communicated in June 2023.

Last Changed: October 17, 2023
The submission session is now available for: HORIZON-CL6-2024-BIODIV-01-9(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-2(HORIZON-IA), HORIZON-CL6-2024-BIODIV-01-7(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-8(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-3(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-6(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-5(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-4(HORIZON-RIA), HORIZON-CL6-2024-BIODIV-01-1(HORIZON-IA)
Biodiversity, economics and finance: Understanding macro-financial risks associated with biodiversity loss | Grantalist