Threading the line between risk and opportunity, sectoral transitions and a health check-in: top nature headlines during Davos in 2025
Al Gore, Vice-President of the United States (1993-2001); Chairman and Co-Founder, Generation Investment Management, USA; Andrew Forrest, Executive Chairman and Founder, Fortescue, Australia; Gim Huay Neo, Managing Director, World Economic Forum; Katherine Gao Haichun, Co-Chair, Trina Solar, People's Republic of China; Muhammad Yunus, Chief Adviser of the Interim Government of Bangladesh; Pedro Sánchez, Prime Minister of Spain; Salil S. Parekh, Chief Executive Officer and Managing Director, Infosys, India; speaking in State of Climate and Nature session at the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland. Copyright: World Economic Forum / Jason Alden
What date is it again? If anyone had the feeling 2025 would come as a quiet one, think again. We are barely one month into the year and already navigating a wave of climate-focused developments. When deciding how to frame this article — good news first or bad?— we realized that, in today’s world, the two are inextricably linked.
Take, for example, the momentous contrast between political and corporate actions. At nearly the same time that President Trump took office in the US and announced he is backstepping their climate commitment under the Paris Agreement, the private sector sent a strong signal we can still move forward. This was notably evidenced at the conclusion of the World Economic Forum’s Annual Meeting, where over 3,000 leaders from various industries and governments gathered to discuss actions for funding and advancing sustainable economic development— with tackling climate change and reversing nature loss at its core.
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Our eyes and ears at Davos report that nature is holding a bigger space this year than ever before. Roundtables and panels on nature financing were oversubscribed, drawing a diverse crowd—from impact investors to institutional asset managers. “There is great energy around nature as an alternative to the now very polarized ‘climate’ conversation”, one of our lookouts said.
One thing is clear: nature is not just an environmental concern—it is a business imperative. In fact, nature in business terms translated into an estimated $44 trillion of economic value generation – more than half the world’s GDP – regarding nature-dependent economic activities. Yet biodiversity loss and ecosystem degradation, driven by land and sea use change, climate change, pollution, water scarcity, and invasive species, pose increasing risks.
Such relevance is still not translated into everyday business, however. One of the key highlights this year at the Forum’s Annual Meeting was publicizing a ‘health check’ of global businesses under the new State of Nature and Climate report, which looked into how planetary health and global corporate progress connect in addressing climate and nature challenges. The study indicates that, while six planetary boundaries are now crossed, only 10% of corporates analyzed (representing 67% of market capitalization) demonstrate tangible action to address the climate and nature emergency, and only 1% are performing at the highest assessed level.
Top nature headlines
A Historic Forest Reserve in the Democratic Republic of Congo
In a landmark decision, the Democratic Republic of Congo announced the creation of the world’s largest tropical forest reserve—an area the size of France. Supported by the European Union with €42 million in funding, the Kivu-Kinshasa Green Corridor integrates forest preservation, sustainable economic development, and renewable energy initiatives.
One intact portion of this reserve alone—comparable in size to Iceland—sequesters 1.5 billion tons of CO2 annually and contains peat swamps storing 29 billion tons of carbon, equivalent to three years’ worth of global greenhouse gas emissions.
Thailand Joins the First Movers Coalition for Food
Thailand announced its participation in the First Movers Coalition (FMC) for Food, a global initiative aimed at transforming food systems. With a primary focus on sustainable rice production, this initiative has significant potential for impact—studies indicate that rice cultivation contributes 1.5% of global greenhouse gas emissions due to inefficient fertilizer use and methane-emitting bacteria in flooded paddies.
Ecuador Becomes the First Amazon Nation to Sign a LEAF Agreement
A little late to the meeting but still very much relevant to the theme, Emergent announced on January 28th that Ecuador has become the first national government in the Amazon region to sign a groundbreaking LEAF Coalition agreement to access climate finance. This $30 million deal rewards efforts to combat deforestation and reduce GHG emissions while ensuring equitable benefits for Indigenous Peoples, Afro-descendant, Montubio, and local communities.
Lucy Almond, Chair of Nature4Climate, praised the initiative:
“LEAF has demonstrated real leadership by sending a powerful demand signal for jurisdictional REDD+ credits. This model offers a sustainable alternative to deforestation and promotes livelihoods based on forest conservation.”
A nature-positive sectoral approach
Nature is indeed essential for industries – not only for reducing emissions but for building economic resilience, helping industries like agriculture, mining and real estate manage supply chains, protect resources and enhance long-term profitability.
A major theme emerging from Davos was the need for sector-specific approaches to nature-positive finance. A combination of six reports aimed at critical industries – offshore wind, mining and metals, ports, and automotive – and financing solutions for building nature-positive cities helped build the bridge between protecting biodiversity and elevating nature-based solutions across the economy. The research identifies $1.4 trillion in nature-positive opportunities across these industries and outlines frameworks to assess their environmental impacts, dependencies, and priority actions. Notably, the reports emphasize energy transition strategies that benefit both people and nature, as well as the role of the tech sector in driving sustainability.
All eyes on Brazil
All roads now seem to lead to Belém, and at Davos, it was no different. Many of the recurring themes revolved around COP 30 as the pivotal moment to unlock innovative models for nature finance, including the bioeconomy.
Key discussions revolved around the Brazil Bioeconomy and Restoration Finance Coalition which aims to accelerate forest conservation and restoration through at least $10 billion in targeted investments by 2030.
Building from COP29’s agreement for a $300 billion annual contribution to developing countries and the establishment of a global architecture for the Carbon Market under Article 6, expectations are growing for ‘forest – bioeconomics’ and a duly regulated Article 6. This all builds from Brazil’s new motto of the standing tree being worth more than a fallen one.
Speaking of carbon markets and keeping trees alive, the Swiss trading house Mercuria, The Nature Conservancy and Conservation International joined forces and launched the ‘Race to Belém’ campaign, which aims to raise an initial $1.5 billion to help protect the Amazon, by working with Brazilian states, farmers and local communities.
While the COP 30 agenda is still shaping up, especially after the announcement of the new COP President, it seems that the expectations are building beyond the national borders, and much was heard about how Brazil can also play a pivotal role in shaping nature and climate action throughout Latin America; as well as pushing the narrative of more equilibrium between environmental responsibility with economic growth, particularly in the agriculture sector, and cattle specifically.
Lots to think about and even more to look out for
As we reach the end of this not-so-short summary, there is obviously so much more to keep watching. Overall, our main takeaways cannot ignore the fact that there is a pressing need for finance to start working with nature, not against it.