Biodiversity loss poses growing risk to German economy, says new report

Biodiversity loss poses growing risk to German economy, says new report
Banking & Financial Services
Webp 9
Stefan Wintels, Executive Board member | KfW Group

The loss of tropical rainforest reached a record level in 2024, with 6.7 million hectares disappearing—an area comparable to the size of Ireland. This decline in biodiversity is raising concerns about its economic impact, particularly for countries like Germany.

More than half of Germany's economy relies on healthy ecosystems and the services they provide. As biodiversity and natural resources diminish, there are growing risks to prosperity, supply chains, and employment worldwide. The importance of these issues is highlighted as global leaders meet at the UN Climate Change Conference in Brazil to discuss climate and nature conservation solutions.

The latest issue of "Development in brief" explores how nature conservation is moving beyond being a niche concern. The publication argues that protecting biodiversity is now seen as essential for economic growth, security, and fair competition. It also outlines how German companies can benefit from integrating nature conservation into their business models.

New regulations and innovative financing mechanisms are being introduced to help companies treat biodiversity as an important economic factor.