Adoption of biodiversity bonds is accelerating

From the newsletter

Biodiversity bonds have attracted about $200 million in investments in the past six months, a figure expected to mobilise over $1.7 billion for protection of endangered species and ecosystems. The latest project launched is by the World Wildlife Fund which is leading an initiative in South Africa to protect five million hectares of wild areas.

• The bonds are considered a long-term funding mechanism for conservation and are expected to raise over $231 million to clear invasive vegetation and restore and protect five million hectares of wild land. 

• In July 2025, the Global Environment Facility launched the biggest biodiversity bonds project worth $1.5 billion across the continent with notable others preceding that.

More details

• WWF is leading a $231 to $347 million initiative to protect five million hectares of wild areas. The Nature Conservancy, working with Rand Merchant Bank, is designing a biodiversity outcomes bond that rewards investors when invasive species are cleared near Cape Town. SANParks anchors the implementation within South Africa’s protected area network, while Conservation International provides technical and financial expertise to ensure accountability and measurable biodiversity impact.

• Biodiversity bonds were first tested in 2022 with a rhino protection project in South Africa. In July 2025, the Global Environment Facility launched the biggest biodiversity bonds project aimed at mobilising up to $1.5 billion for the protection of endangered species and ecosystems across 54 African countries. Following successful pilot projects for rhinos and chimpanzees in Rwanda and lemurs in Madagascar, GEF committed an initial $150 million to the project.

• The Global Environment Facility pioneered its biodiversity bond model with the 2022 Rhino Bond, a $150 million instrument backed by the World Bank. This bond linked investor returns to the growth of black rhino populations in South Africa’s Addo and Great Fish River reserves, ensuring that conservation funding was directly tied to measurable wildlife outcomes.

• This was followed by a chimpanzee conservation bond in Rwanda in 2023, targeting protection in key forest habitats. In 2024, the Global Environment Facility approved another bond for lemur conservation in Madagascar. These pilots used off-balance-sheet finance mechanisms that attracted private capital without adding to public debt, and have informed the design of the current continent-wide $1.5 billion expansion plan.

• Biodiversity bonds can provide conservation organisations in Africa with a new and innovative source of funding for their efforts. These "outcome-based" bonds link investment returns to the achievement of specific conservation goals, such as increasing wildlife populations. This model encourages private sector investment and transfers some project risk to investors. 

Our take

• Biodiversity bonds were launched in Africa in 2022 with a single species. The expansion to full ecosystems signals a growing trust as tools for measurable environmental impact and investment appeal.

• This broader focus allows protection of entire landscapes such as wetlands and forests. It aligns with global biodiversity goals and offers sustainable financing amid shrinking public funds, helping Africa scale conservation beyond iconic species.