Biodiversity loss is a critical environmental challenge, undermining ecosystems and the essential services they provide. The European Union’s Biodiversity Strategy for 2030 calls for urgent action and major investments to reverse this trend. However, public funding alone is insufficient. BIO-CAPITAL is a 42-month Horizon Europe project created to help fill this gap by mobilising private investment for biodiversity conservation, using novel approaches to ensure that funding leads to tangible results.
The central idea is that innovative financial instruments, coupled with advanced monitoring technology, can unlock new resources for nature while giving investors confidence in the outcomes. BIO-CAPITAL’s interdisciplinary consortium spans ecology, finance, remote sensing, and stakeholder engagement. Activities are piloted in five regions across Europe (from forests to farmlands), where local stakeholders co-design and test solutions. The main objectives are to map and evaluate current policy and financing frameworks; to develop and pilot new financing mechanisms (e.g. green bonds, Payments for Ecosystem Services, biodiversity insurance) that reward biodiversity-friendly practices; to establish a robust monitoring system (leveraging satellite Earth observation and field data) to quantify biodiversity gains; and to co-create a biodiversity certificate scheme that standardizes how biodiversity improvements are measured and valued (analogous to carbon credits for nature). By achieving these objectives, BIO-CAPITAL aims to channel new financial flows into biodiversity protection, achieve measurable ecological improvements on the ground, and provide models that can be scaled up across Europe.