The sovereign advantage: Why governments hold the key to reversing nature and biodiversity
- Accrona
- Apr 14
- 5 min read
There is a big lever at play that can outplay all others. Sovereign governments—stewards of national land and policymakers at scale—hold unique power to shape the future of our ecosystems.
As carbon dioxide emissions became the shorthand metric for climate action, land use is becoming the defining metric for nature and biodiversity. Protecting and restoring land is, potentially, the single most powerful action we can take, and sovereigns are by far the largest landowners globally.
In addition to protecting land and rewilding it, sovereigns can address the estimated USD 600–800 billion annual biodiversity financing gap through regulation, fiscal policy, infrastructure development, and direct investment. More importantly, they can unlock the structural shifts needed to embed nature into economic planning and national growth strategies. We often get caught up in what corporates can do to create value, or how the financial system can drive change—but in the end, sovereigns might just hold the ultimate key.
Sovereign nations are pivotal in scaling nature and biodiversity progress through financing, wielding unique powers to shape market rules, mobilise capital at an unprecedented scale through policy setting, and foster enabling environments for investment flows—but the single most significant tool in their toolbox is protecting land.
How can sovereign nations transform their vast influence into a driving force for nature-positive outcomes?
Sovereign commitments: moving from targets to tangible impact
Progress is already underway. The Protected Planet Report 2024 shows encouraging momentum: 51 countries have surpassed the 30% terrestrial protection target, and 31 have done the same for marine ecosystems. A third of all countries have expanded their protected networks since 2020.
These moves align with the Kunming-Montreal Global Biodiversity Framework, which mandates effective management of protected areas, equitable governance, and respect for Indigenous peoples’ rights. However, Norway’s ambitious claim of protecting 44% of its ocean territory highlights its commitment to marine conservation, but independent assessments reveal that only a small fraction meets international criteria for effective conservation, underscoring both the progress made and the challenges of translating targets into tangible biodiversity outcomes
This underlines a critical point: sovereigns must go beyond declarations. Effective nature and biodiversity outcomes require not just designating protected zones but backing them with funding, enforcement, and community stewardship.
Underpinning all of this is the critical role of sovereign-backed data systems. National Biodiversity Data Infrastructures (NBDIs) provide the long-term monitoring, data preservation, and validation mechanisms needed to allocate conservation capital effectively and hold stakeholders accountable.
Tools like the Sovereign Biodiversity Index, now covering 116 countries, help investors assess national biodiversity policies and risks, guiding capital toward nations with robust frameworks. Without this backbone of data and monitoring, even the best financial instruments and cross-border collaborations risk fragmentation and inefficiency.
Sovereign finance: sovereign debt as a catalyst for nature
Perhaps the most exciting frontier is sovereign-led financial innovation. Financial instruments incorporating nature and biodiversity protection accounted for nearly one-third of total sustainability-labelled debt issued in early 2024, with volumes expected to reach USD 300 billion by year-end. Debt-for-nature swaps are also gaining traction. The Seychelles pioneered this approach, converting USD 21.6 million of sovereign debt into marine conservation funding, protecting 400,000 km² of ocean while improving the nation’s fiscal health.
Since then, Belize, Barbados, Gabon, and Ecuador have collectively refinanced over USD 2.5 billion in sovereign debt, unlocking USD 850 million for conservation. With a new global coalition established in 2024, the potential to unlock up to USD 100 billion for climate and nature finance is within reach. These instruments show how sovereigns can leverage existing financial obligations to fund nature and biodiversity while strengthening their balance sheets.
Institutional alignment and cross-border cooperation
Nature and biodiversity finance doesn’t stop at national borders. Sovereign-led alignment of institutions and cross-border collaboration are essential for scaling impact. Frameworks like Nature Finance’s "More for Less" highlight practical pathways: building capacity in debt management offices, embedding sustainability into fiscal responsibility laws, and integrating nature-based solutions into national financial structures.
Global collaboration is advancing. In 2024, a coalition to scale sovereign debt conversions established shared project pipelines and standard practice frameworks. Sovereigns are harmonising key performance indicators and sustainability bond standards to accelerate private capital mobilisation.
Success hinges on coordination across ministries—finance, environment, and planning. Without sovereign alignment at the highest levels, nature and biodiversity initiatives risk remaining fragmented projects rather than transformative national strategies.
Infrastructure as a platform for nature and biodiversity
Historically, infrastructure development has often overlooked nature and biodiversity. That is changing. Countries worldwide are embedding nature-positive policies into infrastructure planning. Chile’s 2024 Sustainable Infrastructure Law mandates wildlife corridors in all highway projects over USD 50 million, aiming for a 43% reduction in habitat fragmentation. China’s Ecological Civilization initiative mandates an 8% biodiversity uplift for Belt and Road projects, with enforcement through dedicated environmental courts.
The World Bank’s 2025 Blue Economy Framework directs USD 2.1 billion into nature-positive port infrastructure, focusing on mangrove restoration across 14 developing coastal nations. Other nations are turning climate risks into action plans. Tanzania, where road transport underpins 90% of the transport of people and goods, has identified 12 high-priority nature-based projects to restore slopes and floodplains, reduce erosion, and strengthen vital trade corridors.
Bangladesh, facing an estimated EUR 12.8 billion in potential flood damage by 2050, is scaling mangrove restoration and floodplain reforestation across a portfolio of eight priority projects. These initiatives combine climate resilience, biodiversity gains, and community benefits in high-risk coastal zones.
These examples show a decisive shift from nature and biodiversity as an afterthought to biodiversity as a foundation for resilient infrastructure.
Closing thoughts
Sovereigns are uniquely positioned to drive transformative change in nature and biodiversity. They control the policies, capital, land use decisions, and institutional frameworks that shape ecosystems at scale. Governments can turn biodiversity loss into a solvable challenge by recognising land use as the defining metric—much like CO2e emissions for climate.
The playbook is emerging: national nature and biodiversity data systems, innovative debt instruments, cross-border cooperation, and nature-positive infrastructure. These tools, combined with political will, can unlock meaningful progress.
The future belongs to nations that embed nature into their economic strategies—not as an environmental obligation but as a pillar of prosperity, resilience, and global leadership.
Key questions to consider:
How can your government prioritise land use and ecosystem protection to drive nature and biodiversity-positive outcomes?
What financial tools and policy levers could unlock private capital for nature at scale?
How can cross-ministerial coordination accelerate your national biodiversity strategy?
At Accrona, we bring actionable insights and deep expertise in sustainability and sustainable finance. Discover our flagship thought leadership platform—Biannual Bluprint—on nature and biodiversity. We help organisations navigate the complexities of integrating nature and biodiversity considerations into strategy, financing, and risk management. We have worked on these challenges with several corporates, financial institutions, municipalities, and sovereigns globally in the Nordics, South America, Africa, and Asia. Contact us today to explore how we can help your organisation turn biodiversity challenges into opportunities for growth and resilience.
