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Off the charts?: Reasons to be skeptical of the growth in biodiversity finance

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Title: Off the charts?: Reasons to be skeptical of the growth in biodiversity finance
Authors: Christiansen, Jens, Irvine-Broque, Audrey, Dempsey, Jessica, Nelson, Sara, Shapiro-Garza, Elizabeth, Bigger, Patrick, Islar, Mine
Contributors: Lund University, Faculty of Social Sciences, Departments of Administrative, Economic and Social Sciences, LUCSUS (Lund University Centre for Sustainability Studies), Lunds universitet, Samhällsvetenskapliga fakulteten, Samhällsvetenskapliga institutioner och centrumbildningar, LUCSUS, Originator
Source: Current Opinion in Environmental Sustainability. 75
Subject Terms: Social Sciences, Other Social Sciences, Development Studies, Samhällsvetenskap, Annan samhällsvetenskap, Utvecklingsstudier
Description: Recent estimates point to dramatic increases in private capital flowing to biodiversity. Examining main sources of this increase — equity investments and debt — this review asks how biodiversity finance is being calculated, and whether private capital flowing to biodiversity action is growing as much as reported. Furthermore, by examining the literature on the standards and metrics, we ask whether these increases are likely to facilitate biodiverse outcomes. Ultimately, some growth can be ascribed to conceptual innovations in measuring biodiversity-related finance. In several cases, the dollar value represented in nominally biodiversity-related transactions does not reflect actual amounts spent on biodiversity. This review points to a risk of overestimating private financing of biodiversity targets, which may generate overconfidence in this approach. Consequently, this review argues that optimism for private capital solutions should be tempered and accompanied by an upscaling of policy alternatives and regulations that address the financial drivers of biodiversity loss.
Access URL: https://doi.org/10.1016/j.cosust.2025.101544
Database: SwePub
Description
Abstract:Recent estimates point to dramatic increases in private capital flowing to biodiversity. Examining main sources of this increase — equity investments and debt — this review asks how biodiversity finance is being calculated, and whether private capital flowing to biodiversity action is growing as much as reported. Furthermore, by examining the literature on the standards and metrics, we ask whether these increases are likely to facilitate biodiverse outcomes. Ultimately, some growth can be ascribed to conceptual innovations in measuring biodiversity-related finance. In several cases, the dollar value represented in nominally biodiversity-related transactions does not reflect actual amounts spent on biodiversity. This review points to a risk of overestimating private financing of biodiversity targets, which may generate overconfidence in this approach. Consequently, this review argues that optimism for private capital solutions should be tempered and accompanied by an upscaling of policy alternatives and regulations that address the financial drivers of biodiversity loss.
ISSN:18773443
DOI:10.1016/j.cosust.2025.101544