According to the WWF’s Living Planet Report, deforestation and climate change are rapidly deteriorating bioclimatic conditions in the Amazon, threatening to transform the tropical rainforest into savannah or dryland. A tipping point may be reached if 20–25% of the Amazon is deforested; 17% is already lost. Likewise, widespread coral bleaching could degrade coral reefs to the point where they can no longer sustain their ecosystems, endangering food production, livelihoods, and storm protection for over a billion people.
No biodiversity action plan
COP15 set important biodiversity targets in the Kunming-Montreal Global Biodiversity Framework (GBF). At COP16, countries are expected to present their progress in implementing these targets, but through National Biodiversity Strategy and Action Plans (NBSAP).
Success hinges on concrete strategies and implementation. Disappointingly, only about one-third of signatory countries have submitted an action plan so far, with the Netherlands, Belgium, the UK, and Germany notably absent. Spain has submitted a rather lacklustre plan, as noted by WWF's NBSAP tracker.
Reforming finance
To achieve global biodiversity targets, focus must be on both monitoring and securing financial resources for conservation and restoration. COP16 is expected to develop strategies for mobilising private sector funds for biodiversity. Triodos Bank emphasises that negotiating parties should not just focus on attracting additional private finance, but also on reforming both public and private finance flows that drive biodiversity loss.
End harmful subsidies
Reforming and repurposing environmentally harmful subsidies is crucial. The United Nations Environment Programme Finance Initiative (UNEP FI) estimates that about USD 1.7 billion is spent annually by governments on such subsidies, which should instead be redirected to nature restoration and transitioning harmful sectors.
At COP15, an agreement was reached to reduce these subsides by at least USD 500 billion per year by 2030. Triodos Bank urges all countries to map, reduce, and repurpose these subsidies within their NBSAPs to meet global financing goals and reduce environmental damages.
Nature transition plans for companies
It is equally vital to mandate nature-related transition plans for businesses and the financial sector. UNEP FI estimates that yearly about USD 5 trillion of private finance is going to environmentally harmful sectors.
After mapping their respective impacts and risks, companies and financial institutions should be required to make robust nature transition plans to severely limit the risk of financing biodiversity loss. Governments should develop strict requirements on sector-specific harmful activities in financial portfolios including deforestation, factory animal farming or deep-sea mining.
A systems approach to biodiversity finance is necessary to drive transformative change. Robust public incentives are needed to ensure long-term private investment in ecosystem conservation and restoration. This can involve regulatory incentives, fiscal reforms, sovereign bonds, blended finance, or public-private partnerships, with the public sector playing a leading role.
Triodos Bank’s recent loan to Avon Needs Trees illustrates that frameworks like the UK’s Biodiversity Net Gain framework can help banks finance strong nature-based solutions. However, also direct public investments into nature remain an effective way to finance nature conservation and restoration. Both strategies are needed for effective resource mobilisation.
Biodiversity loss is also a social problem
Colombia’s initiative to promote “Peace with Nature” reinforces the fact that humans are part of nature. We need a new model for economic and social development rooted in the ethics of care. The concept of "Peace with Nature" at COP16 calls for both social and environmental justice, ensuring the rights of important stakeholders like indigenous communities, and protecting environmental defenders.
Biodiversity loss is irrefutably also a social problem. Without a holistic approach and attention to social justice dimensions, it will be hard to ensure equitable and long-lasting nature conservation and restoration efforts. We therefore support Colombia's efforts to make COP 16 ‘the people's COP" and making sure that underrepresented groups like youth, indigenous peoples and women have a voice in the negotiations.
The urgency of the situation calls for decisive action at COP16 to safeguard our planet's biodiversity and ecosystems. We stand at a pivotal moment where our collective choices can determine the future of life on Earth. By prioritising comprehensive financial reforms, eliminating harmful subsidies, and mandating transition plans for businesses, we can catalyse the systemic changes necessary for a sustainable future.