Biodiversity Finance Trends 2025: Seven Signals Shaping the Future of Finance for Nature

The Biodiversity Finance Trends 2025 report from The Nature Conservancy offers an encouraging snapshot of global progress. It shows that finance for nature continued to increase between 2019 and 2023, with growing momentum across international finance, private sector engagement, and national biodiversity finance planning. Yet, the current progress is not enough to close the estimated US$700 billion annual biodiversity finance gap by 2030.

Below are seven trends from the report that stand out and what they mean for countries working to turn biodiversity commitments into action.

1. Closing the biodiversity finance gap starts with implementation.

The report's strongest message is not simply that more money is needed for biodiversity.

It is that the world now needs to implement finance solutions on a scale.

Global biodiversity finance continues to grow, but not quickly enough to meet international commitments. Without faster implementation, the report estimates that the world will remain far from closing the US$700 billion annual financing gap needed to achieve targets by 2030.

This is where national planning becomes increasingly important. Countries are moving beyond setting biodiversity targets toward identifying the policies, institutions and financial mechanisms needed to deliver them.

UNDP’s Biodiversity Finance Initiative (UNDP BIOFIN) supports this transition through its Biodiversity Finance methodology, helping governments assess finance needs, identify financing gaps and develop National Biodiversity Finance Plans tailored to national priorities.

2. Biodiversity is becoming a financial issue, not just an environmental one

One of the report's most striking findings is how rapidly biodiversity is entering boardrooms and financial markets.

More than half of global GDP—around US$58 trillion—depends on nature, while ecosystem services are estimated to generate approximately US$150 trillion in value each year. Yet the private sector continues to account for most nature-degrading financial flows.

Businesses are increasingly recognising these risks.

The report highlights that 620 organisations representing US$20 trillion in assets under management have now committed to reporting nature-related risks using the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), a significant increase from 420 organisations reported last year.

For governments, this creates new opportunities to work with financial institutions and businesses to improve transparency, reduce biodiversity risks and unlock greater private investment for nature.

3. Some of the biggest opportunities lie within existing public budgets

Closing the biodiversity finance gap is not only about mobilising new resources.

It is also about making better use of existing public finance.

The report identifies harmful incentives and subsidies as one of the largest untapped opportunities for financing biodiversity. Governments continue to spend significantly more on activities that harm nature than on those that protect it. Repurposing these incentives can generate environmental, economic and social benefits simultaneously.

Progress is accelerating.

According to the report:

• 19 countries have completed national harmful subsidy assessments with support from BIOFIN;
• 16 countries and two regions are currently conducting assessments; and
• 89 additional countries are planning this work.

These assessments provide governments with the evidence needed to redesign incentives while maintaining economic and social objectives.

4. Climate and biodiversity finance need to work together

Perhaps the most surprising statistic in the report concerns the relationship between climate and biodiversity finance.

While 89% of bilateral biodiversity finance also contributes to climate objectives, only 22% of climate finance supports biodiversity outcomes.

This highlights a major opportunity.

Healthy ecosystems store carbon, reduce disaster risks, improve water security and strengthen climate resilience. Better aligning biodiversity strategies, Nationally Determined Contributions (NDCs) and climate finance could significantly increase the impact of existing investments while delivering benefits for both people and nature.

5. International biodiversity finance continues to grow, but uncertainty remains

The report shows encouraging progress toward KMGBF’s international finance targets.

Biodiversity-specific international finance reached US$16.8 billion in 2023, while broader biodiversity-related finance totalled US$29.8 billion, continuing an upward trend observed since 2019.

If these trends continue, countries could be on track to meet the interim target of mobilising US$20 billion annually for developing countries.

However, there is also cause for caution.

Overall development assistance is expected to decline over the coming years, creating uncertainty about future biodiversity finance. The report stresses the importance of maintaining biodiversity as a priority within development cooperation and mainstream nature across broader investment portfolios.

6. Countries are building new finance solutions, not relying on one

Another encouraging trend is the growing emphasis on domestic resource mobilisation.

The report notes that:

• 130 countries have formally started developing National Biodiversity Finance Plans;
• 39 countries have completed them;
• 57 countries have updated National Biodiversity Strategies and Action Plans aligned with the Global Biodiversity Framework;
• 16 countries are developing policy frameworks for biodiversity markets; and
• US$1.92 billion has been unlocked through sovereign debt refinancing for conservation.

The report also references BIOFIN's catalogue of more than 150 biodiversity finance solutions, demonstrating the wide range of mechanisms now available, from biodiversity credits and green taxation to protected area fees, insurance, blended finance and payments for ecosystem services.

Rather than relying on a single financing mechanism, countries are increasingly combining multiple approaches to build resilient financing systems for nature.

7. Better data is becoming one of the most valuable finance tools

Behind every financing decision lies one essential ingredient: reliable data.

The report highlights persistent challenges in tracking biodiversity finance, including incomplete reporting, inconsistent methodologies and a two-year lag in international finance data. Better information is needed not only to measure progress but also to build confidence among governments, investors and development partners.

This reinforces the importance of evidence-based finance planning. Through Biodiversity Expenditure Reviews, Finance Needs Assessments and Policy and Institutional Reviews, countries are generating the data required to identify financing gaps, evaluate policy options and monitor progress over time.

Looking ahead

The Biodiversity Finance Trends 2025 report offers reasons for optimism. Biodiversity finance is increasing, businesses are beginning to integrate nature into financial decision-making, and governments are expanding the range of financial tools available to protect biodiversity.

At the same time, the report sends a clear message: the next five years will depend less on new commitments and more on implementation.

For countries, this means translating biodiversity strategies into investment plans, repurposing harmful incentives, mobilising private capital and strengthening domestic finance systems. For UNDP BIOFIN and its growing global network, it means continuing to help governments turn global biodiversity targets into practical, financeable action.

Read the full Biodiversity Finance Trends 2025 report to explore the latest global data and analysis on financing the Kunming-Montreal Global Biodiversity Framework.