Nick Van Hee graduated with great distinction in June 2023, earning a Master’s degree in Business Engineering from the University of Antwerp. He further specialized in sustainability by completing a second Master’s degree in Environmental Science in June 2024, also from the University of Antwerp. Throughout his academic journey, Nick gained practical experience through internships, as a Climate Risk Intern at Gimv, a private equity firm, and as a Sustainability Consultant Intern at Deloitte. In addition to his hands-on experience, Nick has contributed to academic research. He wrote an article on the economic potential of Small Modular Reactors, which was published in the Renewable and Sustainable Energy Reviews journal. In September 2024, Nick joined Econopolis Strategy as a Climate Analyst, where he focuses on strategic advisory projects related to climate and the energy transition.
Funding nature’s future: status of biodiversity financing during COP16
The UN’s largest biodiversity conference, COP 16 is currently underway in Colombia, offering an opportunity to align global financing with ambitious biodiversity targets set just two years ago in Montreal. This conference is the first of three COPs in rapid succession, setting a high bar for international collaboration on environmental goals, with COP 29 focusing on climate change next month and a desertification COP in December.
A step forward or just a drop in the ocean?
In Colombia, discussions focus on realizing commitments made during COP 15 in Montreal, where countries pledged to mobilize $200 billion annually by 2030 to protect 30% of global land and ocean areas. According to BloombergNEF (BNEF), biodiversity finance flows, defined as funding directed toward conservation and restoration, currently stand at about $208 billion a year—surpassing the COP 15 target[1]. Despite this apparent progress, it remains minimal compared to the projected biodiversity financing needs by 2030 of $1,150 billion. This disparity underscores that while the $200 billion mark may have been reached, it remains far from adequate.
Governments lead while private sector is waking up
Most biodiversity finance today comes from governments, contributing around $173 billion globally. However, the vast majority of this public finance is allocated domestically, with only $10 billion flowing internationally in 2022. To address this gap, wealthier government have been increasingly supporting nature-rich, cash-poor nations with debt-for-nature swaps. In these arrangements, creditors cancel a portion of a country’s debt in exchange for conservation commitments, with 2023 marking a record high of $2.3 billion in debt relief. Besides debt-for-nature swaps, official development assistance also plays a crucial role in international public finance. However, this funding remains heavily concentrated, with 75% coming from just five countries: Germany, France, the United States, Norway, and the Netherlands. The figure below depicts a more detailed list of the top 15 global donors of biodiversity-related official development assistance, highlighting Norway as the largest donor relative to the size of its economy.
Figure 1: Biodiversity-related official development assistance by donor. Data from BNEF (2024)
Meanwhile, private sector engagement is also growing, with financial institutions like JPMorgan and Standard Chartered attending the COP for the first time[2]. Biodiversity-themed funds are emerging, reflecting increased awareness of the financial risks posed by ecosystem loss. Recent studies underscore the material risks to businesses: approximately 75% of eurozone banks’ corporate loans, representing about €3.24 trillion, are “highly dependent on at least one ecosystem service”. However, even as banks and companies assess nature-related risks, a challenge remains in the inconsistent methods of assessing and disclosing exposure to biodiversity risk. Critics argue that disclosing biodiversity exposure alone may not be enough to incentivize corporations driving the most nature-negative activities to alter their practices, as these actors may not bear the direct financial costs of biodiversity loss.
As COP 16 progresses, it is clear that while biodiversity financing has achieved milestones, systemic transformation is essential to match the scale of investment in activities that degrade ecosystems. The ongoing negotiations in Colombia are thus pivotal, both for refining financial commitments and establishing mechanisms that make biodiversity preservation a foundational component of global finance. For more information or to discuss strategies that align with sustainable biodiversity goals, reach out to our team.
[1] https://assets.bbhub.io/professional/sites/24/Biodiversity-Finance-Factbook_COP16.pdf
[2] https://www.ft.com/content/b9917467-97a3-4e7b-8a7b-ceecc279a5ab