Nature loss as a systemic risk to the global economy and financial stability

The new global scientific assessment, supported by more than 150 governments in February 2026, sends a clear message: Biodiversity loss is becoming a systemic risk to the global economy, supply chains and financial stability. The report "Business and Biodiversity Assessment", prepared by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), emphasizes that every single business in the world is dependent on and impacts nature.

An economy built on the foundations of nature

Healthy ecosystems are not just an environmental issue; they are a pillar of economic activity. From agricultural production and raw material availability to water supply, climate resilience and tourism, all of these sectors draw directly from natural capital. Yet decades of unsustainable growth have led to a drastic loss of diversity, which now threatens not only human well-being but also the stability of financial markets.

Environment Commissioner Jessika Roswall said: protecting and restoring ecosystems is not only an environmental necessity, but also an economic priority. Science clearly proves that our business cannot do without a healthy nature.

The funding gap and invisible costs

One of the most critical findings of the IPBES report is the huge gap in global funding for nature conservation. While approximately $1.1 billion was invested in ecosystem protection and restoration in 2023, 184.58 billion euros, financial flows that harm biodiversity have reached dizzying levels 6.12 trillion euros. This amount includes not only private investment in high-risk sectors, but also harmful public subsidies.

Public spending on environmentally harmful subsidies amounts to approximately 2.01 trillion euros. The largest share goes to:

  • fossil fuels (€948.07 billion),
  • agriculture (€343.99 billion),
  • water management (€335.60 billion),
  • of transport (€151.02 billion),
  • construction (€125.85 billion),
  • fishing (€50.34 billion).

These numbers represent a huge opportunity to redirect capital towards nature-positive solutions. However, the alarming fact remains that less than 1 % companies, which publish their economic results, are now also reporting on their impacts on biodiversity.

The path to solutions: European initiative and nature credits

The European Union is taking steps to bridge this gap. The European Commission is currently working on „"Roadmap towards nature credits". The aim is to create credible mechanisms that financially reward measurable positive outcomes for ecosystems and mobilise private capital for land and sea restoration. This process includes the work of expert groups and pilot projects to build a robust evidence base for future legislation.

In addition, Slovenia recently joined IPBES, making all 27 EU Member States became members of this key scientific platform. This reinforces Europe's collective commitment to action based on scientific evidence.

The Future of Business at EU Green Week 2026

Efforts to transform the economy will culminate during EU Green Week in June 2026. The event will focus on practical demonstrations of „nature-positive“ economy models – from innovative farms to cities using nature-inspired solutions. A new feature will be a matchmaking event for startups and investors, connecting small and medium-sized enterprises working on ecological solutions with potential investors. Registration for this event opens in April 2026.

Conclusion messages IPBES is clear: businesses and financial institutions must urgently start measuring and managing their impacts on nature. More than 100 concrete measures, that can help businesses move on a sustainable path and contribute to rebuilding a world in which the economy and nature thrive together. JRi&CO2AI

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