17 
 
3.3.2. Investments, pricing and taxation  
Tackling biodiversity loss and restoring ecosystems will require significant public and 
private investments at national and European level. This will mean making the most of 
all relevant EU programmes and financing instruments. The Co mmission will strengthen 
its biodiversity proofing framework 69, inter alia  by using in an appropriate way the 
criteria established under the EU taxonomy,  to ensure that EU funding supports 
biodiversity-friendly investments. 
To meet the needs of this strategy, including investment priorities for Natura 2000 and 
green infrastructure, at least €20 billion a year 70 should be unlocked for spending on 
nature. This will require mobilising private and public funding at national and EU  
level71, including through a range of different programmes in the next long -term EU 
budget. Moreover, as nature restoration will make a major contribution to climate 
objectives, a significant proportion of the 25% of the EU budget dedicated to climate 
action will be invested on biodiversity and nature-based solutions.  
Under Invest EU, a dedicated natural -capital and circular -economy initiative will be 
established to mobilise at least €10 billion over the next 10 years, based on public/private 
blended finance. Nature and biodiversity is also a priority for the European Green Deal 
Investment Plan. To help unlock the investment needed, the EU must provide long -term 
certainty for investors and help embed sustainability in the financial system. The EU 
sustainable finance taxonomy will help guide investment towards a green recovery and 
the deployment of nature -based solutions. In 2021, the Commission will adopt a 
delegated act under the  Taxonomy Regulation72 to establish a  common classification of 
economic activities that substantially contribute to protecting and restoring biodiversity 
and ecosystems . This will be further supported by a Renewed Sustainable Finance 
Strategy later this year which will help ensure that the  financial system contributes to 
mitigating ex isting and future risks to biodiversity and  better reflect how biodiversity 
loss affects companies’ profitability and long-term prospects73.  
The Commission will further promote tax systems and pricing that reflect environmental 
costs, including biodiversi ty loss. This should encourage changes in national fiscal 
systems to shift the tax burden from labour to pollution, under -priced resources, and 
other environmental externalities. The ‘ user pays’ and ‘polluter pays’ principles  have 
to be applied to prevent and correct environmental degradation. 
Public authorities’ purchasing power represents 14% of EU GDP and can serve as a 
powerful driver of demand for the products and services of companies that invest in or 
contribute to nature -based solutions. To tap into  this potential, when proposing further 
                                                 
69  See Common framework and guidance documents for biodiversity proofing of the EU budget . 
70  The cost estimate is based on the 2018 Impact Assessment of the LIFE Regulation (SWD(2018) 292), a 
Study on the costs of implementing the Target 2 of the EU Biodiversity Strategy to 2020  and data 
submitted by 16 Member States under Article 8(1) of the Habitats Directive. The Commission will 
update the estimate, notably based on Member States’ P rioritised Action Frameworks under the 
Habitats Directive. 
71  Including the Common Agricultural Policy, Cohesion Policy funds, Horizon Europe, the European 
Maritime and Fisheries Fund, LIFE and external action funds. 
72  See EU taxonomy for sustainable activities.  
73  World Wildlife Fund (2019),  The Nature of Risk – A Framework for Understanding Nature -Related 
Risk to Business.