What’s driving biodiversity loss and how can we reverse it?

Published on: April 17, 2025

The pressing need to address biodiversity loss has never been clearer. Biodiversity loss, ecosystem collapse, climate change and critical changes to Earth systems rank among the top global risks we face in the next decade.

Global trends indicate a decline across nearly all species groups: Around 28 per cent of all assessed species are now threatened with extinction. In Europe, the situation is equally dire, with 25 per cent of assessed species being endangered.

Despite heightened awareness and efforts over the past decades, traditional methods to halt biodiversity decline have fallen short. Current global incentives to combat this crisis remain largely voluntary, yielding insufficient results. With more than one million species on the brink of extinction—many potentially within decades—the stakes have never been higher.

The current rates of biodiversity loss have significant consequences for societies, businesses and ecosystems alike, underscoring the need for comprehensive, systemic change. Maintaining a business-as-usual approach would put more than half of the global GDP at risk.

The international community is taking heed. At COP16 — held in Cali, Mexico and concluded in the Italian capital of Rome — countries adopted the implementation of the landmark Kunming-Montreal Global Biodiversity Framework (GBF) and agreed a way forward to mobilise approximately €195 billion annually to protect nature.

Among its many targets, the GBF aims to conserve and effectively manage 30 per cent of the world’s land and marine areas while ensuring standardised reporting and increased transparency from companies regarding their biodiversity impacts. The conference also highlighted the critical roles of young people, women, indigenous peoples, local communities, civil society and the business community in biodiversity conservation efforts.

Recognising the value of biodiversity is a crucial starting point to drive stakeholder action and develop effective solutions that benefit both our planet and businesses.

This report delves into the drivers of biodiversity loss and the enablers for biodiversity gain across Europe, emphasizing the urgent need for action.

“If we fail to achieve the green transition on nature’s terms, it will not happen at all,” says Andreas Gyllenhammar, Chief Sustainability Officer at Sweco.

What is biodiversity?

So, what exactly is biodiversity? It refers to the variety of life on Earth, encompassing the different species of plants, animals, fungi and microorganisms, as well as the genetic diversity within these species and the ecosystems they form. Biodiversity is vital for maintaining ecological balance, supporting essential ecosystem services such as pollination, nutrient cycling and climate regulation, and providing resources for food, materials and medicine — all of which are crucial for our survival and prosperity. Biodiversity can be categorised into three main levels.

• Genetic diversity: The variation in genetic makeup among individuals within a species.
• Species diversity: The variety and number of species within a given ecosystem or on the entire planet.
• Ecosystem diversity: The range of different ecosystems and their ecological processes.

Abiotic factors, particularly the geological characteristics of an area, play a crucial role in shaping ecosystems. Key considerations include soil composition and the availability of nutrients, as well as groundwater levels. Additionally, geographical location and topography significantly impact biodiversity.

For instance, islands tend to harbour unique species due to their historical isolation, while mountainous regions can support varied ecosystems across different elevations. Coastal areas must contend with challenges posed by salt and erosion, whereas inland regions often experience more extreme temperature fluctuations.

When considering biodiversity in Europe, there is a great variety from country to country and within countries. There are around ten different biogeographical regions in Europe ranging from Alpine and Boreal to Atlantic and Continental.

Why is biodiversity declining?

One of the reasons for the decline in biodiversity is the ongoing climate change which is gradually transforming the world’s ecosystems. As a result, processes, functions and ecosystem services are also changing.

This will become particularly noticeable in urban environments. Partly because urban ecosystems are already heavily burdened by pollution and fragmentation of green spaces, and partly because the large proportion of impervious surfaces exacerbates the effects of warming and extreme weather events such as heavy rainfall, heatwaves and droughts.

Biodiversity loss – the main drivers

According to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), the key direct drivers for biodiversity loss are land and sea use and the change of use, overexploitation of resources, climate change, pollution and invasive alien species. Additionally, there are underlying factors contributing to these direct drivers, including patterns of consumption, population growth, challenges in governance and economic models that may not fully account for environmental costs.

Key direct drivers of biodiversity loss

• Land and sea use: Namely exploitable areas and their natural values
• Use of natural resources: Such as plants, wood and other natural fibres, soil, minerals and metals
• Climate change: For example GHG emissions, extreme weather and acidification of oceans
• Pollution: Including waste, emissions, noise, light pollution and other disturbances
• Invasive species: For instance cultivation and breeding of non-native species, spread of invasive species for example through logistics

Land and sea use, resource overexploitation and pollution

Landuse changes, such as the conversion of forests, wetlands and other natural habitats into agricultural land, urban areas and infrastructure, along with habitat destruction, fragmentation and degradation, are primary drivers of global biodiversity loss. Additionally, unsustainable sea use activities, including coastal development, deep-sea mining and harmful fishing practices, impact marine environment.

Pollution from industrial, agricultural and urban activities endangers ecosystems and various species. Different pollutants such as plastics, pesticides and nutrient runoff cause extensive damage to both terrestrial and aquatic environments. It has been estimated that nitrogen pollution costs €70-320 billion per year in the EU.

Overexploitation of natural resources cause excess replacement rates and depletion of wildlife populations and critical habitats. The current rate of species loss is tens to hundreds of times higher than natural background rates. Understanding these factors is essential for informed decision-making in business development and innovation, environmental management and conservation efforts.

Addressing climate change and invasive species

Climate change and biodiversity loss are strongly interlinked. Climate change causes rising global temperatures, shifting weather patterns and extreme weather, disrupting ecosystems and habitats. Biodiversity loss, in turn, weakens ecosystems’ ability to sequester carbon and regulate climate, accelerating climate change. Healthy ecosystems, such as forests, wetlands and coral reefs, play a crucial role in climate mitigation and adaptation.

Invasive alien species, whether introduced intentionally or accidentally, can outcompete or prey on native species, with ecosystems such as islands and freshwater systems being particularly vulnerable to these invasions. Estimating the cost of invasive alien species to society is very challenging, but an estimate has been suggested of around €12 billion annually in the EU.

Recognising the vital role of biodiversity in climate action is essential, as preserving and restoring natural ecosystems not only enhances resilience to climate change but also contributes significantly to the overall solution to the climate crisis.

Biodiversity and the well-being of people, societies and businesses

Ecosystems deliver numerous essential goods and services vital for the health and well-being of humans, animals and the environment. Biodiversity is fundamental to the functionality of ecosystems. Human activities are transforming ecosystems at a rapid pace to meet the increasing demands for natural resources.

Ecosystem services ensure access to clean water and air, food, medicines and raw materials. They also contribute to climate regulation, water purification and pollination. Culturally, natural landscapes and wildlife inspire tourism and hold spiritual significance for communities and indigenous peoples. Additionally, ecosystem services are critical for disease regulation and disaster risk management.

Besides the ecosystem services with which we are already familiar, healthily functioning ecosystems can offer resilience, solutions and support in the future that we cannot currently imagine. Nature provides an intrinsic value, and healthy ecosystems can also be considered as insurance helping us to adapt to environmental changes.

Beyond supporting human well-being, ecosystem services are essential for businesses. Healthy soil, crop pollination, pest control and genetic resources are just a few examples of services that businesses rely on directly. Ecosystems also provide a buffer against natural disasters, mitigating economic losses.

Numerous ecosystems are being degraded or used unsustainably. The changes in ecosystems are increasing the likelihood of nonlinear and potentially irreversible changes, such as reduced availability of essential services such as clean air, water, food and pollination or weakened ecosystem resilience to environmental changes, including climate change. Due to the economic damage caused by biodiversity loss, industries directly reliant on nature are especially threatened. Eventually all businesses may encounter biodiversity-related risks through their value chains or systemic level instabilities.

A conservative approximation indicates that collapses in ecosystem services could lead to a global GDP reduction of nearly €2.6 trillion by 2030. Low-income and lower-middle-income countries are particularly vulnerable.

Continuous management of biodiversity impacts is essential in securing the resilience of nature, which in turn supports business continuity and profitability. Actions such as reducing harmful subsidies and increasing sustainability measures in production and consumption, are necessary to mitigate biodiversity loss and enhance production of ecosystem services. Incorporating environmental costs and long-term perspectives is essential.

Transitioning to a nature-positive economy is not just an environmental imperative — it’s a business opportunity. By safeguarding the planet’s resources, companies can boost their bottom lines, reduce risks and enhance resilience. Nature positivity is a major business opportunity: by 2030, solutions that improve the state of nature could create 395 million new jobs and nearly €10 trillion worth of business globally.

Vital ecosystem services supporting society and business

• Supporting services: Such as oxygen production, photosynthesis, soil formation, carbon sequestration, water, nitrogen, carbon and nutrient cycling
• Regulating services: Including groundwater formation, plant pollination, erosion and climate regulation, mitigation and prevention of floods and extreme weather events
• Provisioning services: For example plants, fungi, animals, fresh water, energy and fuels, fibres (e.g. wood and cotton), building materials, minerals and medicines
• Cultural services: For instance identity, culture, art, spiritual, aesthetic and recreational