As global challenges mount—from supply chain disruptions to climate shocks and public health crises—the role of nature in underpinning economies has never been clearer. Biodiversity is not a luxury; it is the very foundation of modern prosperity. Without healthy ecosystems and resilient landscapes, nearly every sector faces mounting risk. Yet the numbers reveal a stark imbalance between the value nature delivers and the investments we commit to its survival.

The Economic Imperative of Biodiversity

Recent studies show that half of global GDP—approximately $58 trillion in annual economic activity—is moderately or highly dependent on the services nature provides. These range from pollination of crops and water purification to natural flood defenses and carbon sequestration. Over the past five decades, we have witnessed a 70% decline in wildlife populations, a trend that threatens key industries, destabilizes supply chains, and undermines food and water security for billions.

Failing to protect biodiversity is not an environmental luxury gone lost; it is an economic liability. Transitioning to a nature-positive economy could unlock as much as $10 trillion in business activity by 2030, safeguarding critical ecosystem services while generating sustainable returns.

Understanding the Finance Gap

Despite this staggering upside, the current flow of capital tells a different story. Every year, activities that degrade nature—such as intensive agriculture, deforestation, and fossil fuel extraction—receive about $7 trillion in financing. By contrast, conservation and restoration efforts attract merely $140 billion annually. This leaves a $700 billion annual gap between what is needed and what is spent to preserve the natural systems that underlie our economies.

Closing this gap is not merely aspirational—it is an urgent economic necessity. Without redirecting capital toward nature-positive initiatives, businesses risk operational, regulatory, and reputational shocks as the natural assets they depend on erode.

Global Commitments and Frameworks

In response, governments and institutions have rallied around landmark agreements such as the Kunming-Montreal Global Biodiversity Framework. This framework establishes four overarching goals and 23 targets—among them conserving or restoring 30% of land, water, and degraded ecosystems by 2030, halving the impact of invasive species, and scaling positive incentives for sustainable practices.

• Mobilize $200 billion per year for biodiversity by 2030
• Redirect $500 billion in harmful subsidies toward sustainable uses
• Ensure business disclosure of biodiversity risks and dependencies

At COP16 in Rome (2025), more than 150 countries pledged to deliver $20 billion in international finance by 2025 and $30 billion by 2030. While momentum is building, translating commitments into on-the-ground impact demands sustained policy support and transparent progress tracking.

The Investment Opportunity

Amid the challenges lies a compelling financial case. Biodiversity-labeled products yielded an average 11% return in 2024, outperforming many traditional climate-focused funds. Private investors are waking up to this potential: the assets under management in biodiversity ETFs have doubled over three years to reach $3.7 billion, and 620 organizations—representing $20 trillion in assets—now report on their nature impacts.

• Surging investor demand for nature-positive strategies
• Rapid growth of nature-based solutions in urban and rural settings
• Opportunity to capture first-mover advantages in emerging markets

Companies that integrate biodiversity into their core strategies are better positioned to manage risk, meet evolving regulations, and tap new revenue streams in restoration, sustainable agriculture, and ecosystem services markets.

Tools for Responsible Investors

As interest grows, robust frameworks and standards are emerging to guide capital toward high-impact opportunities. The Taskforce on Nature-related Financial Disclosures (TNFD) launched in 2023, providing a common language and metrics for nature risk reporting. Innovative tools like the Biodiversity Traffic Light system help categorize investments based on their impact, from nature-positive to nature-negative.

• TNFD framework for comprehensive nature risk assessment
• Biodiversity Traffic Light scoring for portfolio alignment
• Standardized disclosures driving transparency and accountability

Access to reliable data is improving, reducing the share of investors citing information gaps from 53% to 38%. By integrating these tools, financial institutions can make informed decisions that align profit with planetary health.

Challenges and the Road Ahead

Despite progress, significant hurdles remain. Cuts in official development assistance risk undermining the $20 billion target for developing nations by 2025. Data gaps persist in domestic biodiversity strategies and repurposed subsidy tracking. Public perception still often relegates biodiversity to a purely environmental concern rather than recognizing its profound economic implications.

Nevertheless, synergies abound. Nearly 90% of bilateral biodiversity finance aligns with climate objectives, with vast opportunities in nature-based adaptation—estimated at a $9 trillion market by 2050. Urban nature-based solutions also stand out as a rapidly expanding frontier, offering co-benefits for climate mitigation, biodiversity protection, and human well-being.

A Call to Action: Investing in Our Future

The economic case for biodiversity is irrefutable. Protecting nature is not a charitable endeavor—it is an investment in the foundations of wealth, health, and resilience. Businesses and investors hold the levers to redirect capital flows, scale innovative solutions, and collaborate with governments to meet shared targets.

Every stakeholder can take action today: incorporate biodiversity metrics into financial decisions, engage with emerging disclosure frameworks, support policy reforms that phase out harmful subsidies, and channel resources into high-impact nature-based solutions. By doing so, we can close the finance gap, deliver on global commitments, and secure a prosperous, nature-positive future for all.

Investing in biodiversity is more than a moral responsibility—it is a strategic imperative for sustainable growth. The time to act is now, before the natural capital that underwrites human progress slips beyond recovery.