COP16.2: We need System Change for Just Biodiversity Finance

This briefing by Friends of the Earth International argues that the biodiversity crisis is driven by systemic financial failures and calls for a fundamental reform of the financial system ahead of the COP16.2 negotiations in Rome. It criticizes the current reliance on private finance, biodiversity offsets, and the failure of developed nations to meet funding pledges, while advocating for direct financial support for Indigenous Peoples and Local Communities (IPLCs).

• The COP16.2 negotiations in Rome, Italy (25-27 February 2025), focus on financial issues and the creation of a new fund to ensure fair resource distribution. Current mechanisms are described as unjust because the Global Environment Facility favors countries capable of providing large amounts of co-funding, and developed countries have failed to fulfill the inadequate pledges made at COP15.
• The global financial sector is a primary driver of biodiversity loss. Since 2015, banks have provided over US$395 billion in credit to extractive industries—including beef, palm oil, pulp and paper, rubber, soy, and timber—in deforestation-vulnerable regions. Profit-driven sectors such as industrial agriculture, forestry, mining, and oil and gas are estimated to cause up to 90% of global biodiversity loss.
• Developing countries are hindered by predatory debt and economic dependencies on biodiversity-degrading exports. The document cites Argentina's reliance on soy and the Democratic Republic of Congo's dependence on mineral mining as examples. Furthermore, the International Monetary Fund and World Bank are accused of pressuring these nations to implement policies that incentivize destructive sectors over environmental regulations.
• The briefing rejects the use of private finance, biodiversity offsets, and green bonds as viable solutions. It states that only US$ 5 billion has been raised via private finance so far. Biodiversity offsets are described as 'perverse' because they stem from destruction elsewhere and typically result in ecosystems of lower quality. Green bonds, which reached approximately US$1 trillion in investment in 2024, are flagged for high risks of greenwashing.
• A fundamental system change is required to direct funds toward real on-the-ground action. The document emphasizes that Indigenous Peoples and Local Communities (IPLCs) are the most effective at conservation but receive the least financial support, with virtually no mechanisms for direct funding. Establishing direct allocation mechanisms for IPLCs is presented as a necessary act of justice.

APA

FOEIAdmin (2025). COP16.2: We need System Change for Just Biodiversity Finance. Friends of the Earth International. https://www.foei.org/cop16-2-we-need-system-change-just-biodiversity-finance/

Chicago

FOEIAdmin. COP16.2: We need System Change for Just Biodiversity Finance. Friends of the Earth International, 2025. https://www.foei.org/cop16-2-we-need-system-change-just-biodiversity-finance/.

Wikipedia

{{cite report |last1=FOEIAdmin |title=COP16.2: We need System Change for Just Biodiversity Finance |publisher=Friends of the Earth International |date=26 February 2025 |url=https://www.foei.org/cop16-2-we-need-system-change-just-biodiversity-finance/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{foeiadmin2025cop162, author = {FOEIAdmin}, title = {{COP16.2: We need System Change for Just Biodiversity Finance}}, institution = {Friends of the Earth International}, year = {2025}, month = feb, url = {https://www.foei.org/cop16-2-we-need-system-change-just-biodiversity-finance/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }