Project BiROFin: Biodiversity-related risks and opportunities to the financial sector

The financial sector needs robust data to understand and mitigate the impacts of biodiversity and nature-related losses. BiROFin's unique approach aligns science-based future biodiversity and financial scenarios, utilising advanced economic modelling techniques to provide data on monetary estimates of biodiversity effects on the economy at the country and sector levels. It also provides country-level data on the cost-effectiveness of measures to abate and restore those losses.  

Wageningen University & Research (WUR) plays a key role by combining ecological and economic data and creating a unique dataset that evaluates the cost-effectiveness of biodiversity abatement and restoration strategies. By linking changes in ecosystem services, driven by biodiversity loss and extreme climate events, to economic impacts, BiROFin addresses a significant gap in current risk assessment frameworks.  

An estimated biodiversity financing gap of US$ 598-824 billion per year exists. Bridging this gap necessitates a partnership between the public and private financial sectors. This PPP project plays a crucial role in establishing such a partnership by providing location and sector-specific monetary figures on:

• Sectoral and country-level economic effects of biodiversity loss to assess the impact and risks on the financial sector.
• Measures to abate and restore biodiversity loss, specifically assessing cost-effectiveness and providing investment estimates to accelerate strategic opportunities.

This collaboration aims to address the most significant ecosystem services, sectors, and specific major countries for the private sector.

To build a resilient financial sector and effectively finance the adaptation to and mitigation of biodiversity loss, it is essential to have location and sector-specific quantities and monetary figures. With ING as the lead partner and the participating financial sector stakeholders, the research finds direct applicability to standard risk, market, strategy, and reporting processes. The project will close current gaps in available data, scenarios, and assessment methodologies to build a state-of-the-art framework for the financial industry. 

List of recent publications: 

• Bending the curve for biodiversity loss and economy
• Estimating future economic effects of biodiversity loss and strategies to mitigate it

We have been collaborating with Allianz to develop an innovative quantitative estimation tool that allows us to assess the monetary impact of biodiversity loss at the country-sector level. Learn more: 

• The new risk frontier in finance: biodiversity loss
• Biodiversity loss part II: portfolio impacts and abatement measures
• Ashes to ashes, carbon to soil

Read about the Magnet model: 

• MAGNET (Modular Applied GeNeral Equilibrium Tool)

The project collaborates closely with the Foundation for Sustainable Development (FSD) and leading private-sector stakeholders, including ING, Allianz Group, APG, Commerzbank, and Ortec Finance, ensuring that the outputs are both scientifically robust and practically relevant for financial decision-making. In 2025, we welcome our two new partners: KfW and Sail-Investments.

This project receives financial support from the Top Sector Agri & Food, specifically from the Knowledge and Innovation Agenda for Agriculture, Water, and Food 2024-2027 (KIA). Within the Top Sector, businesses, knowledge institutions, and the government work together on innovations for safe and healthy food for 9 billion people in a resilient world.