By: Staff Writer
October 30, 2026
A new study by the Inter-American Development Bank (IDB) and the Economic Commission for Latin America and the Caribbean (ECLAC) revealed that there is a gap between financing needs for the conservation, restoration, and sustainable use of biodiversity and it is an obstacle to reconfiguring production systems.
The study, “The Biodiversity Financing Gap in Latin America and the Caribbean,” also said: “The accelerated loss of biodiversity and the degradation of ecosystem services are eroding the economic foundations of development in Latin America and the Caribbean by deepening structural vulnerabilities and limiting the ability to sustain dynamic, resilient, and inclusive growth trajectories.”
Latin America and the Caribbean needs approximately $170 billion annually to conserve its biodiversity and restore its ecosystems, according to a new study by the IDB and the ECLAC. At current financing flows, the estimated annual financing gap is nearly $153 billion, equivalent to approximately 2.1 percent of regional GDP.
“In a region highly dependent on its natural capital, the disconnect between productive development policies, land-use patterns, and the direction of financial flows has contributed to perpetuating development traps characterized by low growth capacity, high exposure to environmental and climate risks, and limited capacity for structural transformation.
“In this context, the gap between financing needs for the conservation, restoration, and sustainable use of biodiversity and the financing currently mobilized is not merely an environmental or budgetary challenge, but a central obstacle to reconfiguring production systems and thereby supporting a sustainable development trajectory in the region.
“Addressing this gap requires greater coherence among productive, fiscal, financial, and environmental policies, as well as steering public and private financing as a strategic instrument to align economic development with the conservation and sustainable use of natural capital.”
For Latin America and the Caribbean (LAC), biodiversity is more than an environmental asset. It is essential to the region’s economic development. More than half of the region’s GDP depends on ecosystem services, and about 19% of jobs are in sectors linked to nature. Natural capital supports productive sectors, food and water security, resilience, livelihoods, and human well-being.
Yet biodiversity loss and ecosystem degradation put these benefits at risk. Investment in conservation, restoration, and sustainability remains far below what is needed leaving an estimated financing gap of $153 billion a year, equivalent to 2.1% of regional GDP. Closing this gap will require more than additional funding. The region’s countries need better ways to direct financing towards priority ecosystems and measure results, mobilize private capital, and make the value of nature visible in economic planning and investment decisions.
In 2026, the Inter-American Development Bank Group (IDB Group) and its partners have advanced practical approaches to financing conservation and integrating natural capital into development. In collaboration with governments, other multilateral development banks (MDBs) and partners such as the Economic Commission for Latin America and the Caribbean (ECLAC), the Global Environment Facility (GEF) and Stanford University’s Natural Capital Alliance, the Bank has developed new knowledge products and tools to help countries turn biodiversity commitments into action.
At COP17, the IDB Group will showcase a set of complementary resources that address three closely linked challenges in biodiversity finance. These resources aim to improve understanding of the scale of the biodiversity financing gap, expand the range of financing solutions available to help close it, and integrate natural capital considerations into decision-making processes so that investments can deliver lasting environmental, social, and economic benefits.