Inclusive finance and trade

In response, there is growing interest in valuing and insuring ecosystem services. Examples include insurance structures for coral reefs or calculations of the economic value of pollination. These approaches make visible the extent to which the economy depends on nature and how much damage biodiversity loss can cause.

At the same time, the need for companies to report transparently on their dependencies and impacts is growing. The EU Corporate Sustainability Reporting Directive requires thousands of enterprises to disclose their performance on climate, biodiversity and the circular economy. This encourages companies to phase out harmful practices and invest in nature-friendly alternatives.

The challenge is that biodiversity loss is more complex to measure than climate change. Whereas CO₂ emissions have global effects, biodiversity losses are often local and context-specific. Nevertheless, banks, insurers and researchers are developing new methods and models to map risks and opportunities. This helps financial institutions make better-informed decisions and steer companies towards nature-positive operations.

There are also initiatives where private investment contributes directly to restoration—for instance, agroforestry projects producing cocoa and coffee within forest systems, or hotels investing in coral cultivation. In this way, trade and tourism become part of the solution rather than the problem.

Inclusive finance and trade make biodiversity visible in economic decision-making. By pricing risks more accurately and strengthening positive incentives, capital can be mobilised to reverse biodiversity loss and stimulate nature restoration.