How to win against biodiversity loss: 5 key trends

Biodiversity loss threatens ecosystems, economies and societies, putting over half of global GDP at risk. In Sweco’s latest Urban Insight report, co-authored by UK Ecology Lead Martin Brammah, our global experts highlight five key trends shaping Europe’s response – from financial integration to AI-driven conservation of biodiversity.

Biodiversity loss, ecosystem collapse, climate change and critical changes to earth systems rank among the top global risks communities face in the next decade. Understanding the fundamentals of biodiversity is crucial to developing effective solutions that benefit both our planet, people and businesses.

The report sheds light on these essentials while showcasing successful initiatives and innovative solutions that promote biodiversity, emphasising the urgent need for action.

The Global Biodiversity Framework (GBF) aims to halt and reverse biodiversity loss by 2030, with ambitious targets such as conserving 30% of land and water and restoring 30% of degraded ecosystems. However, progress on implementation has been slow. Globally, 23% of countries have submitted updated National Biodiversity Strategy and Action Plans (NBSAPs), but close to 70% of European countries are still to submit their updated NBSAPs.

At the recent COP 16 talks in Rome, countries finally agreed on a strategy to mobilise at approximately €195 billion per year by 2030 to help countries to scale up positive incentives and conserve biodiversity—marking a significant step forward.

The diversity of nature is declining, threatening ecosystems, societies and businesses, with currently over 1 million species on the brink of extinction and placing over half of global GDP at risk if we fail to act. At the same time, several key trends have emerged in Europe that seek to advance the GBF’s goals.

Sweco UK’s Ecology Lead Martin Brammah, who co-authored the latest Urban Insight report, says:

“This study underscores the urgent need for systemic change in how businesses and governments approach biodiversity. It emphasises the importance of integrating biodiversity considerations into financial decision-making and corporate strategies, ensuring these critical factors are prioritised across various sectors.

One key area of focus is the role of finance in promoting biodiversity. Financial institutions are increasingly tasked with assessing the risks and impacts associated with biodiversity loss. This shift not only fosters greater accountability but also encourages the promotion of nature-positive investments that contribute to ecosystem preservation.

Technological advancements, especially digital tools and artificial intelligence, play a crucial role in monitoring biodiversity and collecting data. These innovations are essential for informed decision-making and the development of effective conservation strategies, enabling stakeholders to respond proactively to the challenges confronting our natural world.

The report underscores the significance of nature-based solutions, advocating for collaborative efforts that align with natural processes to address pressing environmental challenges. By focusing on strategies that enhance climate resilience and combat pollution, stakeholders can pave the way for a more sustainable future.

Additionally, the study calls for stronger policy and legislative frameworks that incentivise biodiversity-positive business models and practices. By establishing robust legal structures, we can encourage businesses to adopt more sustainable approaches that benefit both the environment and their operations.

The path forward requires a concerted effort to integrate biodiversity into the fabric of economic and social decision-making. By recognising the intrinsic value of nature and the services it provides, Europe can foster a regenerative economy that safeguards our planet while enhancing human wellbeing and economic resilience.

5 key trends driving Europe’s biodiversity agenda

1. 1. Biodiversity in Finance

There is a growing trend across Europe towards increased assessment and disclosure of biodiversity impacts by businesses and financial institutions, driven by the recognition of financial risks associated with biodiversity loss.

Global frameworks like Science-Based Targets for Nature enable companies and cities to set targets for their work on the climate and nature, and the Taskforce on Nature-related Financial Disclosures (TNFD) helps companies mitigate biodiversity-related risks. These frameworks are increasingly used by companies to enable systematic value-chain analyses, target setting and disclosures. The Corporate Sustainability Reporting Directive (CSRD) includes reporting standards that also enable companies to disclose their contributions to biodiversity loss.

1. 2. Biodiversity Credit Markets

Increased assessment and disclosure of biodiversity impacts has led to the development of biodiversity offset and credit markets, which allow organisations to compensate for their impacts by investing in conservation efforts.

The UK and Germany are working with biodiversity credit markets, allowing businesses to offset their impact through conservation investments. In England, the Biodiversity Net Gain (BNG) policy sets a global benchmark, requiring a 10% improvement in biodiversity for new developments. The BNG is a development approach that requires developers in England to enhance wildlife habitats by at least 10% beyond their original state.

1. 3. Restoration and Conservation Investments

This trend is marked by the establishment of various funding mechanisms aimed at supporting biodiversity initiatives, such as Horizon Europe and the LIFE Programme. Despite these efforts, the European Commission has identified a funding gap, prompting the exploration of new financial instruments. Public-private partnerships (PPPs) are increasingly being utilised to finance conservation projects, while national initiatives, like Denmark’s ‘Grøn Trepart,’ aim to repurpose farmland for biodiversity restoration.

Governments and businesses are scaling up restoration. Germany has pledged €4 billion, while Denmark is converting 400,000 hectares of land into wetlands and forests. Public-private partnerships facilitate collaboration that help define common priorities, which could be the key to driving large-scale conservation efforts across Europe.

1. 4. Biodiversity in Cities

This trend is partly driven by the EU Restoration Act, which requires the maintenance and expansion of green spaces and tree canopies in cities. This regulation, along with initiatives aimed at ‘wilding’ urban environments, seeks to restore natural ecosystems, create ecological corridors and involve citizens in sustainable planning, enhancing ecosystem services, improving climate resilience and promoting biodiversity in cities.

Swedish municipalities receive support for integrating ecosystem services and green infrastructure through the national Guidance for Green Planning. In the Netherlands, many municipalities now require nature-inclusive design as part of the process for issuing building permits; developers can score ‘nature points’ through features like green roofs and provision for wildlife. In Belgium, Antwerp is investing in a circular water network that purifies and reallocates freshwater for urban use, replenishing groundwater and enhancing biodiversity.

1. 5. Digital and AI-Powered Biodiversity Solutions

Technology is transforming conservation. AI-driven satellite imagery, vegetation monitoring drones, acoustic sensors, digital twins and biodiversity tracking apps like Seek and Pl@ntNet enhance monitoring, and tools like wildlife cameras are enabling real-time biodiversity assessments.