Introduction

The report highlights the urgent need to address the global biodiversity financing gap, driven by unprecedented biodiversity loss and insufficient financial resources. It builds an economic case for biodiversity conservation, identifying critical challenges and proposing nine financial and policy mechanisms to close this gap. With biodiversity funding falling short by US$598–824 billion annually, this report serves as a roadmap for policymakers and stakeholders to mitigate biodiversity loss through targeted investments and reforms.

The economic case for protecting biodiversity

Biodiversity is foundational to global economies, supporting ecosystem services such as pollination, water purification, and climate regulation, valued at an estimated US$44 trillion annually. However, current market systems undervalue biodiversity due to external costs, public good characteristics, and undefined property rights. Key examples include forests capturing 25% of CO2 emissions and pollinators contributing US$217–500 billion annually to agriculture. A fundamental shift in economic systems and policies is required to internalise biodiversity’s value and drive sustainable practices.

Updating the estimate of current global biodiversity conservation finance

In 2019, global biodiversity conservation financing was estimated at US$124–143 billion annually. The majority (57%) came from domestic budgets, with additional contributions from natural infrastructure investments (20%) and philanthropy (4%). However, harmful subsidies in agriculture, forestry, and fisheries, valued at US$274–542 billion, far outstrip conservation funding. The report emphasises the importance of aligning public and private investments with biodiversity goals and eliminating perverse subsidies.

Estimated financing need for global biodiversity conservation

To halt biodiversity loss by 2030, annual funding of US$722–967 billion is required, representing 0.7–1.0% of global GDP. Key needs include US$149–192 billion for expanding protected areas, US$315–420 billion for sustainable agriculture, and US$27–37 billion for restoring degraded ecosystems. Urban biodiversity management and the control of invasive species also require substantial investments. The gap between current funding and these needs underscores the necessity of mobilising additional resources and reforms.

Financial and policy mechanisms to close the biodiversity financing gap

Harmful subsidies reform
Harmful subsidies in agriculture, forestry, and fisheries amount to US$273–542 billion annually. Reforming these subsidies could save up to US$268 billion by 2030, significantly reducing funding needs. Governments should implement policies that incentivise sustainable practices and redirect harmful subsidies toward biodiversity-positive outcomes.

Investment risk management
Investment risk management encourages financial institutions to consider biodiversity impacts in decision-making. Although data limitations prevent exact estimates, integrating biodiversity into financial standards and disclosure frameworks could mitigate harm and unlock private sector financing for conservation.

Biodiversity offsets
Biodiversity offsets, currently generating US$6.3–9.2 billion annually, compensate for unavoidable biodiversity loss due to development. Scaling up offsets could mobilise US$162–168 billion annually by 2030. Governments should strengthen enforcement, implement spatial planning, and require long-term monitoring to achieve no net biodiversity loss.

Domestic budgets and tax policy
Domestic budgets remain the largest source of biodiversity funding. Innovative tax policies and earmarked revenue streams could increase biodiversity financing to US$103–155 billion annually by 2030. Governments must ensure efficient deployment of funds and strengthen accountability mechanisms.

Natural infrastructure
Investments in natural infrastructure, such as watersheds and coastal ecosystems, generate both biodiversity and climate benefits. Current annual funding of US$27 billion could grow to US$105–139 billion by 2030 through public-private partnerships and cost-effective natural solutions over engineered alternatives.

Green financial products
Green bonds, sustainability-linked loans, and other financial instruments have potential to mobilise US$31–93 billion annually by 2030. Clear guidance, incentives, and transparency standards are essential for scaling up green finance to support biodiversity-positive investments.

Nature-based solutions and carbon markets
Nature-based solutions (NBS), including reforestation and ecosystem restoration, could deliver US$25–40 billion annually by leveraging carbon markets and climate goals. Integrating biodiversity into carbon pricing and national climate strategies is key to scaling NBS.

Official Development Assistance (ODA)
Doubling ODA for biodiversity from US$4–10 billion to US$8–19 billion annually by 2030 would support biodiversity-rich countries in implementing conservation mechanisms. Aid agencies should focus on capacity building, policy frameworks, and results-based reporting to maximise impact.

Sustainable supply chains
Sustainable practices in supply chains, particularly for commodities like palm oil and soy, could generate US$12–19 billion annually. Governments and businesses should enforce deforestation-free standards, incentivise sustainable production, and engage consumers through ecolabels and certifications.

Report level recommendations

The report provides six overarching recommendations to close the biodiversity financing gap:

• Implement immediate policy actions to protect natural capital and expand conservation financing.
• Double ODA for biodiversity and direct resources to high-priority areas.
• Strengthen regulatory frameworks to de-risk private investments and incentivise sustainable practices.
• Mobilise private sector participation through biodiversity-inclusive supply chains, offsets, and green finance.
• Improve global tracking and reporting of biodiversity finance.
• Develop and implement National Biodiversity Finance Plans (NBFPs) to guide country-level efforts.