Communication

Nature in Europe: Where we stand – and what it means for the financial system

27 November 2025
🎙️ 🌱 Sustainability Bridges – Episode 31:

In this episode of Sustainability Bridges, we were joined by special guest Dr. Riyong Kim, Head of Sustainability at the European Environment Agency (EEA).

Drawing on the EEA’s flagship report “Europe’s Environment 2025”, our conversation explores the current state of Europe’s environment, from serious challenges to areas of real progress, and what these findings mean for the continent’s sustainability trajectory and economy.

Key insights from the discussion:

  • Reasons for hope despite the challenges: the EU has progressed significantly in climate mitigation (37% greenhouse gas emission reduction since 1990), improved the air quality and increased the share of protected areas.
  • However, the overall state of Europe’s environment remains concerning. Biodiversity is under severe stress, with 81% of habitats in a poor or bad conservation status. Large parts of soils are being classified as degraded, with negative impacts on food production. One third of Europeans experience seasonal water scarcity. Together, these trends pose serious risks for our quality of life, security and economic competitiveness.
  • Climate change is amplifying these pressures, while progress in transforming production and consumption systems remains slow.
  • Nature is a core economic asset, on which 72% of businesses and 75% of corporate financing depend.
  • One of the big challenges is the significant biodiversity investment gap in the EU, estimated €21 billion missing annually. A combination of public and private finance is needed to bridge this gap.
  • Accelerating biodiversity investments require stronger policy coherence across sectors, and better information: standardised disclosures and effective metrics capturing biodiversity outcomes. It is worrying that the Omnibus I package risks weakening the quality and quantity of this data.
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