Biodiversity: Understanding the crisis to lead change

Summary 

The planet is undergoing its sixth mass extinction and this time, the cause is human. Latin America, despite being one of the most biodiverse regions on Earth, is home to some of the most severe losses: decades of accumulated pressure have left an alarming proportion of species at risk.

Through this article, Latimpacto aims to highlight the different pressures driving ecosystem loss and degradation, with concrete examples. These pressures, also known as drivers of biodiversity loss, include land use change, overexploitation, invasive species, pollution, and climate change, all amplified by structural forces such as population growth and unsustainable economic models.

The consequences of nature's degradation extend far beyond ecology: biodiversity underpins a significant share of the global economy and is an essential source of modern medicine and the well-being of countless communities. But the crisis also opens opportunities, investing in nature's protection generates tangible economic returns and reduces long-term systemic risks.

Responding to this crisis requires knowing the territory, mapping stakeholders, generating local knowledge, and building multi-actor dialogue. As an example, we highlight how some of our members are leading initiatives in this direction, from freshwater ecosystem protection in Colombia to Amazonian bioeconomy and sustainable fisheries in Mexico.

Introduction:

We are facing the sixth mass extinction in the history of the planet. But this time there is a fundamental difference: we are causing it. According to the IUCN Red List, 48,600 species are currently threatened with extinction globally, for instance 1 in 3 tree species and 2 in 5 amphibians are under this threat (IUCN, n.d.; IUCN, 2023). 

This picture is especially alarming for Latin America and the Caribbean. Despite being one of the most biodiverse regions on Earth, approximately 30% of identified species in the region face some degree of threat (IUCN, n.d.), driven primarily by unplanned urban development, small-scale agriculture and livestock farming, and extractive activities such as mining (IUCN, n.d.). The most telling data point comes from the Living Planet Report, which documents a 95% decline in monitored wildlife populations in the region since 1970 (WWF, 2024), an unprecedented collapse that reflects decades of accumulated pressure on ecosystems.

While nature holds intrinsic value beyond any figure, multiple organizations have sought to quantify what is at stake: more than 50% of global GDP depends directly on nature (WEF, 2024), and approximately 50% of modern medicines are derived from it (WHO, 2025). Losing biodiversity is not only an ecological tragedy, it is a systemic risk to economic stability and to humanity's capacity to care for its own health.

Yet this same crisis opens a window of opportunity. Addressing nature's degradation is estimated to generate annual business opportunities of around $10 trillion by 2030 (Business for Nature, n.d.). Protecting the world's seagrass meadows could prevent climate damages valued at over $200 billion by avoiding the release of 1.2 billion tons of carbon to the atmosphere (Conservation International, n.d.; WWF, 2025). 

Mangroves, meanwhile, store three to four times more carbon per hectare than tropical forests, holding more than 21 gigatons of carbon globally, 87% of which lies in the soil beneath their roots (WWF, n.d.). Their destruction is not a local problem but a global one: mangrove deforestation contributes to 10% of global greenhouse gas emissions (WWF, n.d.). These figures make clear that protecting nature is not merely a conservation act, it is a strategy for climate mitigation, community resilience, and long-term economic stability.

Acting today is not only urgent from an environmental perspective, it is strategically relevant. Biodiversity is not a sectoral or peripheral issue, it is the foundation on which the economy, health, and human well-being rest. Those who understand that connection and integrate it into their investment and strategic decisions will not only achieve greater impact, but also hold a stronger position against the risks ahead.

Why is biodiversity declining?

The loss and degradation of biodiversity are driven by direct and indirect drivers of change in nature (IPBES, n.d.). The direct drivers include: 

  • Land use change is the most decisive driver at a global scale. It encompasses the conversion of natural habitats, changes in ecosystem and agro-ecosystem management, and the habitat fragmentation that results from the spatial reconfiguration of landscapes (IPBES, n.d.). Deforestation in the Amazon is its most visible expression: 8.6 million hectares of primary forest converted to agricultural land, eliminating at the root the ecological infrastructure that sustains countless species (WWF, 2025).
  • Overexploitation occurs when the use, extraction, or harvesting of species or ecosystems exceeds its own capacity to recover (IPBES, n.d.). This phenomenon is amplified by population growth and rising per capita consumption, and ranges from legal and illegal wildlife trade to poaching and unsustainable fishing. Glass frogs, endemic to Neotropical forests, illustrate how extractive pressure can push entire species to the brink of collapse (IUCN, n.d.).
  • Invasive alien species: the introduction of foreign species that spread beyond their entry points, fractures ecological balance by competing with native species for resources, preying on them, or transmitting disease (IPBES, n.d.). The case of hippos in Colombia, descendants of individuals introduced by Pablo Escobar, is now a paradigmatic example of how a exotic species can irreversibly alter an ecosystem that never evolved to contain it. 4 animals introduced in the 1980s have since multiplied to over 180 individuals with no natural predators, competing with native species for resources (Instituto Humboldt, 2023). In the first half of 2026, this sparked a national debate incorporating ecological, academic, and economic perspectives to evaluate the most appropriate strategies: euthanasia or the relocation of 80 individuals (El País, 2026).  
  • Pollution: the concentration of pollutants in soil, water, and air, directly undermines ecosystem health, reducing population viability and disrupting the natural cycles that sustain them (IPBES, n.d.). One example is the runaway proliferation of sargassum along Mexico's Caribbean coast, driven by elevated ocean nutrient levels, this year, volumes could surpass the record of 522,000 tons per season (El País, 2026). In moderate quantities, this macroalgae contributes to ocean health, but in excess, it smothers coral and seagrass, restricts the movement of marine species, and harms coastal tourism through the release of hydrogen sulfide (National Geographic, 2025).
  • Climate change: the sustained rise in global temperatures and greenhouse gas concentrations, is reshaping climate and environmental patterns at a pace many ecosystems cannot keep up with (IPBES, n.d.). Coral reefs are the clearest indicator of this process: a global temperature increase of just 1.5°C could reduce coral reefs by up to 90% (IPCC, 2023).

Behind these direct drivers lie deeper structural forces that determine the scale and pace of biodiversity loss. Indirect drivers do not affect ecosystems immediately; rather, they shape the economic, social, and political conditions under which environmental degradation occurs (IPBES, n.d.). Key indirect drivers include population growth and patterns of mass consumption, both of which intensify direct pressures on nature. A notable example is the technological paradox: while the energy transition is essential for mitigating climate change, it also increases demand for critical minerals and generates growing volumes of electronic waste, placing additional stress on vulnerable ecosystems. Equally important are cultural values and governance frameworks, whose regulations, incentives, and collective narratives possess significant transformative potential and should not be underestimated (IPBES, n.d.).

What can we do? 

Know the territory before intervening: Understanding which ecosystems, species, and pressures exist in areas of interest is the starting point for any effective intervention. Without that diagnosis, investments lose direction and relevance.

Map the stakeholders: Communities, governments, businesses, academia, and civil society coexist in every territory with distinct interests and impacts on nature. Identifying and listening to them is essential to building sustainable interventions and lasting alliances.

Invest in knowledge: The lack of local data is one of the main barriers to action on biodiversity. Generating information on ecosystem status and projected risks is, in itself, contributing to conservation.

Build spaces for dialogue: The biodiversity crisis cannot be solved unilaterally. Funding working groups that bring together multiple actors makes it possible to build collective agendas with greater legitimacy and reach.

Learn from what already works: Proven conservation experiences exist across Latin America and the world, offering valuable lessons about which approaches work, in which contexts, and under what conditions. Investing time in learning from these experiences, connecting with the organizations leading them, and exploring opportunities for replication or collaboration is essential.

Act with a long-term vision: Biodiversity conservation is a strategic investment, not an isolated philanthropic expense. Aligning investment and sustainability decisions with global frameworks such as Kunming-Montreal, which aims to protect 30% of the planet by 2030, is today one of the most relevant commitments for any organization serious about impact.

What are some of our members doing?

  • Mi Páramo — Fundación Santo Domingo: A multi-stakeholder initiative aimed at protecting more than 2,000 hectares of forest and páramo in Cundinamarca, Colombia, a territory that supplies water to more than 70% of the Colombian population. It combines restoration with native species, payments for environmental services, and community strengthening.
  • Amazon BeEco — Conexsus, IDB, and Green Climate Fund: An initiative to advance inclusive bioeconomy across six Pan-Amazonian countries: Brazil, Colombia, Peru, Ecuador, Guyana, and Suriname. The project mobilizes financing, knowledge, and connections to create more and better opportunities for local communities and ventures in the Amazon, key actors in biodiversity conservation. Partners include IC Fundación, Amazon Conservation Team, NESsT, and Fundación Aliados. The goal is to mobilize USD$5 million in direct financing, strengthen 100 biobusinesses across territories, and foster integration among diverse networks and associations. 
  • Latin American Water Funds Alliance — Fundación FEMSA, IDB, The Nature Conservancy, Green Climate Fund, and the International Climate Initiative (IKI): Active in 10 countries, in 2023 the Alliance positively impacted 44,116 hectares and benefited 16,271 families. Its most recent initiative is a comprehensive water footprint reduction strategy for the agricultural sector in Guanajuato, Mexico, combining irrigation modernization, blended finance, and precision agriculture.
  • Sustainable Fisheries — Walton Family Foundation: For over twenty years, the Foundation has worked on sustainable fisheries management in Mexico, supporting approximately 50 fisheries through an approach that combines local capacity building (data collection, cold storage and cooperative governance) with access to international markets. The initiative is grounded in the premise that artisanal fishers can catch less and earn more when operating with traceability and sustainable practices. Its most recent milestone is the Sustainable Fisheries Dealbook, the first curated collection of investment opportunities aimed at building climate-resilient fisheries and coastal communities in Mexico.

All of these initiatives confirm that biodiversity conservation cannot rest solely in the hands of governments and environmental organizations. The impact ecosystem, with its capacity to mobilize capital, knowledge, and alliances, has a unique role to play. At Latimpacto, we address these challenges through concrete initiatives such as InNature Lab, which closes gaps and generates lasting territorial impact; Green Catalytic Fund, which promotes traceability and institutional capacity in entrepreneurship support organizations; and the Pan-Amazon Investor Education Program, which builds a shared language between communities and capital providers.

At Latimpacto, we will continue supporting our members along this path: documenting what works, connecting those acting on the ground with those who have resources to scale, and building a community of practice that places biodiversity at the center of the impact agenda across the region.

Additional reading: 

References:

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