Private action is essential to halt and reverse biodiversity loss and promote the sustainable use of natural resources, which underpin livelihoods, economic growth and sustainable development. Yet, market failures, weak governance and high transaction costs – particularly in developing countries – mean biodiversity remains undervalued in economic decisions. This limits the ability and incentives of private actors – especially in nature-dependent sectors such as agriculture, forestry, fisheries and mining – to shift business models, comply with rising sustainability requirements and manage nature-related risks. These barriers affect actors in both the real economy and the financial sector, underscoring the need to support the transition to biodiversity-positive pathways.
This report explores how development co-operation can scale up private action for biodiversity and natural capital in developing countries. It highlights three key entry points: strengthening enabling environments, promoting private sector engagement and mobilising private finance through development finance, blending and de-risking mechanisms. Together, these can help shift finance and investment away from activities that harm nature and towards more sustainable practices, including across global value chains and trade. Development co-operation can play a catalytic role by connecting stakeholders, unlocking investment, and mainstreaming biodiversity into policies, operations and supply chains.
