Biodiversity development finance triples over the last decade

Development finance dedicated to biodiversity more than tripled between 2015 and 2024, driven by increased funding from governments and multilateral institutions. However, the OECD warns that the future of this trend is uncertain due to projected declines in broader official development assistance.

Conservation finance is an evolving sector that treats ecological processes—such as water purification and crop pollination—as economic goods and services. To meet international biodiversity targets, which are estimated at $1 trillion annually before 2030 and $4.1 trillion by 2050, various tools are being utilized, including green bonds, debt-for-nature swaps, and biodiversity credits.

While investments in natural capital have grown, with annual flows increasing five-fold since 2016, much of this capital has been concentrated in the Americas, leaving Asia and Africa underfunded. There is a notable shift in investor behavior; rather than relying solely on ESG goals or reputation, a growing number of profit-driven investors now view nature investments as a strategic financial opportunity.