IPBES assessments: economic and financial systems need to evolve to protect biodiversity and support transformative change

This briefing summarizes two 2024 IPBES assessments, highlighting that over half of global GDP (USD 58 trillion) depends on nature, yet financial systems continue to prioritize harmful activities. While USD 7 trillion is invested annually in biodiversity-damaging activities and subsidies for such sectors reach up to USD 3.3 trillion, biodiversity conservation receives only USD 135-200 billion. The reports argue for a systemic transformation—including pricing externalities, reforming debt for low-income nations, and closing a funding gap of up to USD 1 trillion per year—which could potentially create USD 10 trillion in business value and 395 million jobs by 2030.

• Global economic stability is highly dependent on nature, with over half of the world's GDP—approximately USD 58 trillion in 2023—generated by sectors that are moderately to highly dependent on nature. This dependence exposes these economic activities to significant risks from ecosystem collapse and biodiversity loss.
• Current financial flows heavily favor activities that damage the environment over those that protect it. Annual investments in economic activities that damage biodiversity are calculated at USD 7 trillion, while global public explicit subsidies to sectors driving nature's decline were between USD 1.4 trillion and USD 3.3 trillion in 2023, with fossil fuels receiving USD 440 billion to 1.26 trillion and agriculture receiving USD 520 billion to 851 billion. In contrast, annual funding for biodiversity improvement is only between USD 135 billion and USD 200 billion.
• The negative externalities from the fisheries, agriculture, and fossil fuel sectors are estimated to cost between USD 10 trillion and USD 25 trillion annually, impacting climate change, health, food security, water, and biodiversity.
• There is a significant biodiversity funding gap, with additional annual resources estimated between USD 300 billion and USD 1 trillion required to bridge it. Furthermore, at least USD 4 trillion is needed to meet Sustainable Development Goals related to climate, health, food, and water.
• Transforming economic and financial systems to conserve nature could provide a business opportunity value exceeding USD 10 trillion and support 395 million jobs by 2030. Necessary reforms include pricing environmental degradation, reforming harmful subsidies (which the Nexus Assessment notes total USD 1.7 trillion annually), addressing debt crises in low- and middle-income countries, and increasing the private sector's role, as it currently accounts for only 17% of nature-based solution investments.

APA

Team, Z. (2025). IPBES assessments: economic and financial systems need to evolve to protect biodiversity and support transformative change. Zero Carbon Analytics. https://zerocarbon-analytics.org/insights/briefings/ipbes-assessments-economic-and-financial-systems-need-to-evolve-to-protect-biodiversity-and-support-transformative-change/

Chicago

Team, ZCA. IPBES assessments: economic and financial systems need to evolve to protect biodiversity and support transformative change. Zero Carbon Analytics, 2025. https://zerocarbon-analytics.org/insights/briefings/ipbes-assessments-economic-and-financial-systems-need-to-evolve-to-protect-biodiversity-and-support-transformative-change/.

Wikipedia

{{cite report |last1=Team |first1=ZCA |title=IPBES assessments: economic and financial systems need to evolve to protect biodiversity and support transformative change |publisher=Zero Carbon Analytics |date=20 January 2025 |url=https://zerocarbon-analytics.org/insights/briefings/ipbes-assessments-economic-and-financial-systems-need-to-evolve-to-protect-biodiversity-and-support-transformative-change/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{team2025ipbes, author = {Team, ZCA}, title = {{IPBES assessments: economic and financial systems need to evolve to protect biodiversity and support transformative change}}, institution = {Zero Carbon Analytics}, year = {2025}, month = jan, url = {https://zerocarbon-analytics.org/insights/briefings/ipbes-assessments-economic-and-financial-systems-need-to-evolve-to-protect-biodiversity-and-support-transformative-change/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }