Off the charts? : Reasons to be skeptical of the growth in biodiversity finance
(2025) In Current Opinion in Environmental Sustainability 75.- 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... (More)
- 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. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/a26b9de0-d86e-4313-9d9b-968bd6a1b568
- author
- Christiansen, Jens
LU
; Irvine-Broque, Audrey
; Dempsey, Jessica
; Nelson, Sara
; Shapiro-Garza, Elizabeth
; Bigger, Patrick
and Islar, Mine
LU
- organization
- publishing date
- 2025
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Current Opinion in Environmental Sustainability
- volume
- 75
- article number
- 101544
- publisher
- Elsevier
- ISSN
- 1877-3443
- DOI
- 10.1016/j.cosust.2025.101544
- language
- English
- LU publication?
- yes
- id
- a26b9de0-d86e-4313-9d9b-968bd6a1b568
- date added to LUP
- 2025-09-01 14:11:55
- date last changed
- 2025-09-02 07:59:47
@article{a26b9de0-d86e-4313-9d9b-968bd6a1b568, 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.}}, author = {{Christiansen, Jens and Irvine-Broque, Audrey and Dempsey, Jessica and Nelson, Sara and Shapiro-Garza, Elizabeth and Bigger, Patrick and Islar, Mine}}, issn = {{1877-3443}}, language = {{eng}}, publisher = {{Elsevier}}, series = {{Current Opinion in Environmental Sustainability}}, title = {{Off the charts? : Reasons to be skeptical of the growth in biodiversity finance}}, url = {{http://dx.doi.org/10.1016/j.cosust.2025.101544}}, doi = {{10.1016/j.cosust.2025.101544}}, volume = {{75}}, year = {{2025}}, }