Armenia has established important foundations for sustainable finance, including a functioning bond market, experience with green and sustainability-linked instruments, and growing engagement by public institutions and development partners. However, the country remains at an early, pre-issuance stage for dedicated nature-linked and biodiversity-linked financial instruments. Moving from readiness to transactions will require stronger integration of investable project pipelines, credible biodiversity and nature-related KPIs, robust Monitoring, Reporting and Verification (MRV) systems, and appropriate financial structures.

This session will explore how capital-market and innovative financing instruments can help mobilize resources for biodiversity conservation, ecosystem restoration, and nature-positive development in Armenia. It will examine international experience with nature-themed use-of-proceeds bonds, sustainability-linked instruments, outcome-based conservation bonds, debt-for-nature structures, and blended-finance approaches, while considering their applicability to Armenia's institutional and market context.

Particular attention will be given to the practical requirements for translating environmental priorities into financeable structures: identifying eligible projects and expenditures; developing measurable biodiversity and ecosystem KPIs; establishing credible baselines; designing MRV and independent verification arrangements; and structuring financial incentives, proceeds, or performance triggers. The discussion will also consider potential pathways for Armenia, including nature-eligible portfolios, public-sector thematic expenditure frameworks, and targeted performance-based pilots where environmental outcomes can be reliably measured and verified.

The session will bring together perspectives from government, multilateral development institutions, financial-sector actors, biodiversity specialists, and development partners to discuss how Armenia can progress from an enabling sustainable-finance environment toward credible and investable nature-finance transactions.

The session will:

• Present emerging international approaches to nature-linked and biodiversity-linked finance;
• Discuss Armenia's current sustainable-finance readiness and remaining institutional, market, and data gaps;
• Examine the role of KPIs, MRV, and natural capital information in establishing investor credibility;
• Explore potential transaction structures suited to Armenia's environmental priorities and market conditions; and
  Facilitate dialogue among government, MDBs, financial institutions, institutions responsible for biodiversity, and development partners on the next steps toward piloting nature-finance instruments.