Biodiversity receives under 1% of sustainable bond proceeds, study says
A new analysis found that biodiversity received $25 billion, or 0.8%, of $3.15 trillion in proceeds from a sample of sustainable labelled bonds. That was the smallest allocation among the categories studied.
The new paper looked at a sample of bonds carrying sustainability labels. It found that $25 billion, or 0.8%, of $3.15 trillion in assigned proceeds went to biodiversity, the smallest share among the categories reviewed. Carbon Pulse’s Nature & Biodiversity Pulse reported the finding. That service covers biodiversity credits, nature-based carbon, and other emerging nature-related instruments, with coverage across Africa, Europe, the Middle East, the Americas, Asia, and the Pacific.
If biodiversity continues to receive such a small slice of labelled bond proceeds, conservation groups, nature-project developers, and communities depending on ecosystems could face tighter funding for protection and restoration. Investors and bond issuers may also face questions about whether sustainability labels adequately reflect nature-related goals. The finding could prompt market participants to examine how proceeds are allocated and whether biodiversity needs stronger incentives, though the study’s sample limits broad conclusions.