Financial Aid to Key Sectors Threatens the Planet's Biodiversity

Nature is fundamental to human life and well-being: it enables food production, regulates the climate, maintains the water and carbon cycles, and directly contributes to health. More than half of the global economy depends, to a greater or lesser extent, on the services provided by nature. However, human actions are causing an accelerated and widespread deterioration of the planet and all life forms that inhabit it.

The study, led by ICTA-UAB researcher Victoria Reyes-García and recently published in the journal Ambio, analyzed public aid granted to six key economic sectors (agriculture, fossil fuels, forestry, infrastructure, fisheries and aquaculture, and mining) and the indirect impacts of their activities. Recent data indicates that these sectors receive between $1.7 and $3.2 trillion annually in public subsidies, while the environmental damage they generate through indirect impacts on the planet is estimated to be between $10.5 and $22.6 trillion annually.

The study indicates that the environmental degradation they generate is already having significant economic consequences. The World Bank warns that the loss of essential nature services, such as pollination, marine fisheries, and timber supply, could reduce global GDP by $2.7 trillion by 2030. In the United Kingdom alone, it is estimated that the impact of biodiversity loss could lead to a GDP drop of between 6% and 12% over the same period.

The research analyzes the most critical sectors through an extensive documentary review:

• Fossil fuels: In 2022, subsidies to this sector reached $7 trillion. Eliminating these subsidies could reduce global CO₂ emissions by 43% and prevent up to 1.6 million premature deaths per year, due to improved air quality.
• Agriculture: Its impacts include greenhouse gas emissions, soil degradation, and surface and groundwater pollution.
• Forestry: In 2024, forestry activities received $175 billion in subsidies. However, gross deforestation in 2023 was 6.37 million hectares. This contributes to the failure to meet global climate goals.
• Infrastructure: The construction of infrastructure, such as roads and irrigation systems, contributes to the loss of natural habitats and unsustainable water use. In 2015, this sector received $2.3 trillion in subsidies globally.
• Fisheries and aquaculture: Subsidies in this sector reached $55 billion in 2023. Many of these subsidies promote unsustainable practices, such as overfishing and illegal fishing, which threaten marine biodiversity.
• Mining: This sector received at least $40 billion in subsidies, although much of it is not transparently reported. Furthermore, 80% of metallurgical mining is carried out in regions of the planet with rich biodiversity, causing profound ecological impacts.

“One of the main messages of the study is that there is no system to monitor how many subsidies are given, to which industry, and in support of which activities. This information is difficult to obtain, and this study advocates for greater transparency from governments in providing this information,” explains Victoria Reyes-García.

This lack of information becomes even more worrying when considering the magnitude of subsidies to various economic sectors and their indirect impacts that drive environmental degradation. For this reason, the ICTA-UAB research shows that the current economic model urgently needs transformation.

Fortunately, there are already positive examples. New Zealand has eliminated fishing subsidies and replaced them with incentives based on sustainability criteria. Zambia is redirecting agricultural subsidies toward climate- and biodiversity-friendly practices, and England has implemented a system of payments for ecosystem services in the agricultural sector.

These experiences demonstrate that it is possible to redirect public resources toward development models that protect biodiversity and ensure the well-being of present and future generations.

 

Article reference
Reyes-García, V., Villasante, S., Benessaiah, K., Pandit, R., Agrawal, A., Claudet, J., Garibaldi, L. A., Kabisa, M., Pereira, L., & Zinngrebe, Y. (2025). The costs of subsidies and externalities of economic activities driving nature decline. Ambio. https://doi.org/10.1007/s13280-025-02147-3