13.1 Introduction

Biodiversity loss is a reality of the 21^st century. The fight against it has become a priority for governments and nature conservation organisations all over the world. However, despite the fact that most States in the world are a Party to the Convention on Biological Diversity (CBD) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), their efforts have proved insufficient.1 Governments and environmentalists are apparently not the only parties that need to be engaged. The corporate sector is a key player for the maintenance of the ecological balance. Its activities have an immense impact on nature, i.e. on the state of the world's biodiversity and the health of its ecosystem services. Consequently, if the private sector were to reduce its negative impacts and contribute to the preservation of nature, that would make a substantial difference. This ambition has been set out in many of the mainstream private regulatory regimes in the field of CSR, such as the Global Compact, the OECD MNE Guidelines, the Earth Charter, the Equator Principles, the Principles for Responsible Investment (PRI), the GRI G3 sustainability reporting guidelines.2 Even though biodiversity is considered to be a 'public good', the view that business and society share a responsibility for the preservation of the environment is widely supported. The EU has commissioned an extensive study on the value of biodiversity: The Economics of Ecosystems and Biodiversity (TEEB) study,3 and the year 2010 has been designated by the UN as the 'International Biodiversity Year'.4 Besides impacting the ecological balance, companies also depend on ecosystem services for the continuity of raw material supplies and for regulatory services. From a business perspective, one of the solutions to combat the loss of biodiversity is the reorientation of the economic incentives that drive private investment.

This chapter will present the results of a study concerning the developments in the field of private actor investments in biodiversity and ecosystem services (BES). The research was conducted in 2009 by the author and her colleagues of NyenrodeBusinessUniversity in the Netherlands in collaboration with the nature NGOs International Union for the Conservation of Nature - Netherlands Committee (IUCN-NL) and European Centre for Nature Conservation (ECNC).5 The scope of the research project is outlined in Annex 13.1. The outcomes demonstrate that the development of market-based tools for the protection of biodiversity can lead to innovative business opportunities. In this chapter, firstly, the business case for biodiversity will be discussed, both from the perspective of companies and investors. Secondly, various emerging BES markets will be explored by providing examples of concrete projects. Existing opportunities as well as developing initiatives for BES investments will be recorded. Thirdly, an attempt will be made to identify barriers that may prevent investors from exploring these new markets. Possible solutions to overcome existing obstacles will be suggested. Finally, the conclusion will summarise the main ideas emphasised in the research.