Why the WEF Says 2025 is the Year of Nature-Positive Finance

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The WEF's annual summit in Davos took place in January 2025, where reimagining growth, investment in people and safeguarding the planet were topics of conversation | Credit: WEF
Experts from the World Economic Forum predict that 2025 will see huge increases in sustainable finance thanks to improved data, work flows and consensuses

The year 2025 is shaping up to be a pivotal moment in the global push towards nature-positive finance.

At least that is what the experts from the World Economic Forum (WEF) say.

2024 was marked by several landmark moments in climate finance, including Iberdrola's continued investments in sustainable R&D, CaixaBank's impressive roadmap and DP World's blue bonds in the Middle East. 

At the heart of this shift is a recognition of the growing economic risks posed by biodiversity loss, coupled with the rising opportunities for financial institutions to lead the charge in sustainable transformation.

These trends are only projected to continue and improve through 2025.

With global frameworks maturing and innovative financial mechanisms becoming mainstream, businesses across sectors, particularly those tied to manufacturing, are set to see significant changes.

But what exactly do the WEF expect to see across the next 12 months?

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A new consensus driving action

In December 2022, 196 countries adopted the Global Biodiversity Framework (GBF), committing to halt and reverse biodiversity loss by 2030.

Among its transformative targets are the protection of 30% of the planet’s land and oceans, the alignment of financial flows with biodiversity objectives, and the reduction of harmful subsidies by US$500 billion annually.

For financial institutions, this growing consensus offers a clear roadmap for action.

The financial sector, already a key player in addressing climate change, is being urged to extend its focus to biodiversity.

Three reasons why 2025 will be the year of sustainable finance, according to the WEF...
  • 1. There is a growing consensus around global and sectoral pathways that can lead us to nature positivity by 2030
  • 2. Having invested in sustainable teams, resources and initiatives since the Paris Agreement in 2015, many institutions are more capable and experienced in sustainability than ever before
  • 3. High-quality data and disclosures relating to nature are increasingly available, with AI and data sharing programmes contributing to a more healthy and helpful data ecosystem globally.

More than 194 institutions have signed the Finance for Biodiversity Pledge, underscoring their commitment to align operations with nature-positive objectives.

Nevertheless, the stakes are high.

Nature-related impacts from industries such as agriculture, fossil fuels and fisheries could cost the global economy US$10tn to US$25tn annually if left unaddressed.

Delaying action is no longer a viable option.

The WEF's Annual Meeting in Davos this year has placed the natural world squarely on its agenda, highlighting the urgency of these challenges.

“Nature-related risks and opportunities are increasingly material to the financial sector, making this the critical moment to accelerate action and safeguard our planet’s biodiversity," explains Aurora Matteini, Specialist in Sustainable Finance at the WEF.

Aurora Matteini, Specialist in Sustainable Finance at the World Economic Forum | Credit: Aurora Matteini

How sustainability frameworks can help the financial sector

Financial institutions are not starting from scratch. Since the Paris Agreement, many have invested heavily in climate-related expertise, governance structures and risk management frameworks.

These capabilities can now be adapted to address nature-related challenges.

Major banks such as HSBC and Standard Chartered have already established deforestation policies and circularity commitments as part of their broader sustainability strategies.

While aligning financial operations with biodiversity goals may seem daunting, the tools and processes developed for climate action provide a solid foundation.

Laura Fisher, Lead for Sector Transitions to Nature Positive at the WEF, recognises this synergy. 

“The financial systems that institutions have built for can be expanded to nature with relatively limited climate additional resources, making it an efficient and impactful transition," she says.

For manufacturing, this is particularly relevant.

Sectors such as mining, automotive and ports — key contributors to global biodiversity challenges — are beginning to see detailed guidance on how to integrate nature-positive practices.

Such efforts not only mitigate risks but also open doors to new business opportunities.

Laura Fisher, Lead for Sector Transitions to Nature Positive at the World Economic Forum | Credit: Laura Fisher

Innovative tools and data reshaping possibilities

One of the biggest hurdles to addressing nature-related challenges has been the lack of robust data.

However, 2025 marks a turning point.

Advances in data collection and reporting are equipping institutions with the tools to assess nature-related risks more effectively.

High quality datasets, corporate disclosures and new regulatory frameworks such as the EU's Corporate Sustainability Reporting Directive (CSRD) are paving the way for standardised, actionable insights.

The Taskforce on Nature-related Financial Disclosures (TNFD) is a key driver in this effort.

By establishing a framework for identifying and managing nature-related risks, it has fostered consistency in disclosures.

As a result, banks, losers and investors are better equipped to support nature-positive investments.

“Improved data availability is eliminating excuses for inaction, enabling financial institutions to take decisive steps towards achieving global biodiversity goals,” Laura explains.

For businesses, particularly manufacturers, these developments are a double-edged sword.

While compliance with new reporting standards may increase operational complexity, the ability to access detailed insights into biodiversity impacts also presents opportunities to innovate and lead in sustainable practices.

Improved data availability is eliminating excuses for inaction, enabling financial institutions to take decisive steps towards achieving global biodiversity goals.

Laura Fisher, Lead for Sector Transitions to Nature Positive at the World Economic Forum

How to unlock the economic potential of nature-positive strategies

The economic case for nature-positive finance is compelling.

Estimates suggest that transforming economic systems to align with biodiversity goals could unlock US$10.1tn in annual business opportunities by 2030.

Sectors such as renewable energy, sustainable agriculture and eco-tourism stand to benefit significantly.

Moreover, the rapid expansion of nature-focused financial instruments — such as biodiversity-linked bonds and blended finance models — demonstrates a growing appetite for innovation.

Private sector funding for nature surged from US$9.4bn in 2019 to more than US$102bn in 2023, showing casing the momentum behind this transition.

For manufacturing industries, adopting nature-positive practices could yield long-term cost savings and enhance resilience against supply chain disruptions tied to environmental degradation.

“The financial sector has an unprecedented opportunity to lead in addressing biodiversity loss, unlocking sustainable growth and protecting our shared future,” Aurora explains.

According to the WEF, sectors such as renewable energy, sustainable agriculture and eco-tourism stand to benefit significantly from surges in sustainable finance | Credit: WEF

2025 and beyond

With just five years left to meet the GBF's ambitious 2030 targets, 2025 is a critical juncture.

The tools, frameworks and global consensus are in place.

What remains is the will to act decisively.

For financial institutions, manufacturers and policymakers alike, the stakes are clear: failure to act now risks not only economic losses but the degradation of the natural systems upon which all industries ultimately depend.


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