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River flowing through dense woodland, reflecting the surrounding greenery

EU-funded research warns that current public and private contributions fall far short of the US $824 billion needed each year to reverse biodiversity loss. The February 2025 TCforBE report “Finance Instruments and Related Regulations” assesses both global and EU efforts, identifying key gaps in regulatory frameworks and financial incentives. It highlights that while initiatives like the Kunming-Montreal Global Biodiversity Framework and the EU Green Deal set an important policy context, clearer mandates—such as a robust European green bond standard—are needed to steer capital toward nature-positive outcomes.

Among the report’s main findings:

  • Funding shortfall: Existing biodiversity fees, taxes and private investments are insufficient to meet restoration targets.
  • Policy misalignment: EU action still underplays land use and agri-food drivers of ecosystem collapse, despite strong scientific consensus.
  • Hybrid finance: Blended finance models—combining grants, loans and equity—can de-risk investments in conservation and attract larger private capital flows.
  • Public–private partnerships: Leveraging public funds to de-risk private finance is crucial for scaling up effective biodiversity projects.

read the original article on Wageningen University & Research website