The Nature Conservancy report says implementation, subsidy reform, better data and private finance will be crucial as countries work to deliver the Kunming Montreal Global Biodiversity Framework.
Global investment to protect biodiversity is increasing, but the world remains hundreds of billions of dollars short of the resources needed to address nature loss by 2030, according to a new global assessment.
The warning comes from the Biodiversity Finance Trends 2025 report by The Nature Conservancy, which examines global progress in financing biodiversity conservation and highlights the urgent need to translate international commitments into action.
The report finds that biodiversity finance continued to grow between 2019 and 2023, with increasing engagement from governments, businesses and financial institutions. However, despite this progress, the world still faces an estimated US$700 billion annual biodiversity finance gap by 2030.
The findings come as countries work to implement the Kunming Montreal Global Biodiversity Framework, a landmark global agreement aimed at halting biodiversity loss, restoring ecosystems and mobilising greater financial resources for nature protection.
The report’s central message is clear: the challenge is no longer only about making commitments, but ensuring effective implementation.
Scaling up investment, reforming harmful subsidies, strengthening domestic resource mobilisation and unlocking private sector finance will be essential to turning global biodiversity goals into measurable results.
Nature becomes a financial priority
One of the major trends highlighted in the report is the growing recognition that biodiversity is not only an environmental concern but also a financial and economic issue.
More than half of the global economy, representing around US$58 trillion in GDP, depends on nature and ecosystem services. These services, including clean water, healthy soils, pollination and climate regulation, are estimated to generate approximately US$150 trillion in value every year.
Despite this dependence, many financial flows continue to support activities that contribute to ecosystem degradation.
However, businesses and investors are increasingly recognising nature related risks. The report notes that 620 organisations representing US$20 trillion in assets under management have committed to reporting nature related risks based on the recommendations of the Taskforce on Nature related Financial Disclosures.
This shift creates new opportunities for governments, financial institutions and companies to work together to reduce biodiversity risks and increase investment in nature positive solutions.
Closing the gap requires implementation, not only new funding
The report emphasises that solving the biodiversity finance crisis is not simply about finding new sources of money.
A major opportunity lies in improving how existing public resources are used.
Governments around the world continue to provide financial incentives and subsidies that can unintentionally harm ecosystems. Redirecting these resources towards sustainable activities could generate environmental, economic and social benefits.
Progress is already being made. According to the report, 19 countries have completed national harmful subsidy assessments with support from the UNDP Biodiversity Finance Initiative, while 16 countries and two regions are currently conducting assessments. Another 89 countries are planning similar work.
These assessments help governments redesign policies while maintaining economic and social priorities.
Climate and biodiversity finance must work together
The report highlights a major opportunity in connecting climate action with biodiversity protection.
While 89 percent of bilateral biodiversity finance also contributes to climate objectives, only 22 percent of climate finance supports biodiversity outcomes.
Experts say stronger alignment between biodiversity strategies, climate policies and national climate commitments could significantly increase the impact of existing investments.
Healthy ecosystems help store carbon, reduce disaster risks, improve water security and strengthen climate resilience. Protecting biodiversity is therefore increasingly recognised as an essential part of addressing the climate crisis.
International biodiversity finance shows progress but uncertainty remains
The report records encouraging growth in international biodiversity finance.
Biodiversity specific international finance reached US$16.8 billion in 2023, while broader biodiversity related finance reached US$29.8 billion, continuing an upward trend since 2019.
If current trends continue, countries could move closer to meeting the global interim target of mobilising US$20 billion annually for developing countries.
However, the report also warns of uncertainty ahead, with declining development assistance and changing global economic conditions potentially affecting future biodiversity investments.
For developing countries, many of which contain some of the world’s richest ecosystems, predictable and accessible finance remains critical. These countries often face the challenge of protecting biodiversity while also addressing poverty, climate impacts and development needs.
Countries developing diverse finance solutions
The report highlights that countries are increasingly moving beyond traditional funding approaches and developing multiple financial solutions to support biodiversity.
It notes that 130 countries have started developing National Biodiversity Finance Plans, 39 countries have completed these plans, 57 countries have updated their National Biodiversity Strategies and Action Plans in line with the Global Biodiversity Framework, 16 countries are developing policy frameworks for biodiversity markets, and US$1.92 billion has been mobilised through sovereign debt refinancing for conservation.
The report also references more than 150 biodiversity finance solutions identified through BIOFIN, including biodiversity credits, green taxation, protected area financing, blended finance, insurance mechanisms and payments for ecosystem services.
Rather than relying on a single financing source, countries are increasingly combining different approaches to create stronger and more sustainable systems for nature protection.
Better data essential for smarter investment
The report identifies reliable data as one of the most important tools for closing the biodiversity finance gap.
Challenges remain, including inconsistent reporting systems, limited information availability and delays in tracking international biodiversity finance.
Improving data collection and transparency will help governments, investors and development partners better understand financing needs and identify effective solutions.
Countries are increasingly using financial assessments and planning tools to identify gaps, improve transparency and direct resources where they are most needed.
The next five years will be decisive
The Biodiversity Finance Trends 2025 report offers reasons for optimism. Biodiversity finance is growing, businesses are beginning to integrate nature into financial decisions, and governments are expanding the range of tools available to protect ecosystems.
However, the report sends a clear message: the next five years will depend less on announcing new commitments and more on delivering action.
“The biodiversity crisis is also a finance crisis. Without adequate resources, even the strongest global commitments cannot be translated into meaningful action,” biodiversity finance experts have warned.
For governments, this means integrating biodiversity goals into national investment plans, reforming harmful incentives and strengthening domestic financing systems.
For businesses and financial institutions, it means recognising nature as a foundation of economic stability and long term investment security.
As countries accelerate implementation of the Kunming Montreal Global Biodiversity Framework, the challenge ahead is clear: turning biodiversity commitments into investments that protect ecosystems, support communities and secure a sustainable future for generations to come.
