Agriculture is responsible for nearly 90% of deforestation globally (FAO, 2021). About 40% of the world’s land is now degraded, much of it due to unsustainable agriculture and it accounts for nearly 70% of the water usage in the world, depleting rivers and aquifers. According to the 2024 Living Planet Report, agriculture is one of the primary drivers of biodiversity loss, contributing to habitat destruction, soil degradation, and pollution.
The question must be asked- how long can we continue in the current system? How long before food insecurity becomes commonplace? In this context, we don’t think of agriculture as contributing to biodiversity. It is quite like saying we trust a cat in a pigeon hole. But we should be. In Ivo Degn’s words, head of Climate Farmers, farmers are the “first responders” to the biodiversity challenge that’s facing us today. From soil management to planting decisions, the ripple effects of their actions influence the broader environment.
When farmers shift to sustainable practices, they not only restore degraded ecosystems but also build resilience against climate shocks. In an example shared by Paul Chatterton, lead and founder of Landscape Finance Lab, in Queensland, planting trees on the edge of farms in Queensland is actively reducing the risk of floods in the area.
When considering a system driven by industrial agriculture that dictates what, where, when, how much, and the livelihood of farmers, it’s important to understand the need to balance ecological, economic, and social trade-offs (IUCN Flagship Report). It’s one of the reasons why the entire ecosystem working together is so crucial to achieving systems change.
In the session, Green Gold: Unveiling Biodiversity & Natural Capital’s Investment Potential at Impact Days 2024, the panelists explored how this could be enabled and how systems change is already in motion through the collective efforts of farmers, investors, private companies, philanthropy and civil society organisations.
A beginner’s guide to regenerative agriculture
Regenerative agriculture is a system that works hand-in-hand with nature rather than against it. What does it look like in action?
- Cover Cropping: Planting diverse cover crops prevent soil erosion, improve water retention, and provide food for pollinators.
- Agroforestry: Integrating trees into farms, creating wildlife corridors, stabilizing the soil, and boosting biodiversity.
- Crop Rotation & Intercropping: Diversifying crops reducing pest outbreaks and enhances soil health.
- No-Till Farming: Avoiding soil disturbance preserving underground ecosystems and reducing carbon emissions.
- Natural Pest Management: Replacing synthetic pesticides with biological pest control (e.g., beneficial insects like ladybugs and predatory beetles) and companion planting reduces chemical runoff, protects pollinators, and maintains soil health.
These techniques when integrated with traditional farming practises can bridge the gap between humanity’s need for sustenance and nature’s need for preservation.
Change in action
With the right mix of policy, financial incentives, and grassroots initiatives, farming landscapes can transition from ecological depletion sites to hubs of regeneration. By supporting farmers, we invest not only in biodiversity but in the future of the planet itself. Here are some initiatives that embody the impact that regenerative agriculture has on biodiversity.
Restoring high-nature-value farmlands in Austria
Through the FLORA Program by Blühendes Austria, Austrian farmers are revitalizing traditional grasslands and pastures while enhancing biodiversity. By integrating sustainable grazing practices and targeted habitat restoration, the initiative has restored over 400 hectares of ecologically valuable land across 28 protected areas. This approach not only supports rare plant species and pollinators but also ensures long-term agricultural viability. By aligning traditional land management with modern conservation strategies, FLORA provides a replicable model for biodiversity-positive farming in Europe.
Carbon farming in Europe
European farmers practicing carbon sequestration through regenerative agriculture have reported yield increases of 15–25%, improving profitability while lowering carbon footprints. Farmers participating in blended finance initiatives can access carbon credits, making regenerative agriculture economically viable.
Beekeeping & solar-powered agriculture in Spain
Spanish farmers have integrated beekeeping with solar farms, creating habitats that support pollinators while generating renewable energy. Producing solar honey provides additional revenue streams for farmers while promoting biodiversity conservation.
The Netherlands’ ‘Farm of the Future’
In Wageningen, Netherlands, a 100-hectare research farm tests innovative regenerative techniques using GPS, sensors, satellite imagery, and robotics. Methods like strip cropping and mixed tilling have increased biodiversity and reduced input costs. The open-source model encourages the scaling of biodiversity-friendly farming techniques across Europe.
Landscape conservation & agroecology in Romania
In Transylvania and Maramureș, small-scale farmers practicing agroecology and sustainable tourism conserve 60% of Romania’s bird species and critical large carnivore corridors.
Key takeaways
- Diverse models of regenerative agriculture are proving successful across different ecological and economic contexts.
- Farmers benefit financially from regenerative practices through increased yields, lower input costs, and access to premium markets.
- Nature-based solutions, such as agroforestry, agroecology, and carbon farming, enhance climate resilience and biodiversity.
- Policy support and financial incentives are critical to scaling these practices to millions of farmers worldwide.
In examining these case studies, we see that it is a win-win scenario for both farmers as well as biodiversity there is equal gain to be had in making the soil healthier, and pursuing more sustainable farming practices.
The path forward
“Collaboration is the key to success in biodiversity restoration—no single actor can do it alone.” Tanja Dietrich-Hübner, board member of Blühendes Österreich For farmers to become champions of biodiversity, different groups of stakeholders need to be activated and actively involved.
Sylvia Wisniwski, Finance in Motion points out that while globally there’s about 1 trillion dollars in ESG, only 1% is allotted to biodiversity conservation and regenerative agriculture. Companies that depend on agriculture for their businesses must be responsible for restoring biodiversity and integrating it into their supply chain.
There are challenges here, specifically in the popularity of carbon offset markets with corporations. As Sylvia and Evo pointed out, biodiversity is non-fungible. You cannot claim biodiversity conservation by destroying in it one location and restoring it in another. Investments should be focused more on regenerative agriculture and resilient agricultural systems instead.
It would be remiss not to mention fossil fuels in a conversation about biodiversity conservation. As Günther Herndlhofer of VBV – Vorsorgekasse AG noted, “Excluding fossil fuels is the single most significant step financial institutions can take for biodiversity.”
To ensure the widespread adoption of regenerative agriculture and balance the tradeoffs, it’s important to make it viable for farmers of all scales to adopt it. In this, carbon and biodiversity credit systems could go a long way in incentivizing adoption. Not just that, farmer networks should empower and enable farmers with information and training on biodiversity initiatives.
Last, but certainly not least, the adoption of AI and technology solutions can definitely help us accelerate the change that is needed in agriculture. In an Indian example, the government is using an AI chatbot to help farmers with information and new innovations.
The solutions are already in our hands—the frameworks, the practices, and the proof that nature and agriculture can thrive together. But without urgent action and large-scale investment, these blueprints remain just ideas. Scaling regenerative agriculture and empowering farmers as biodiversity stewards must not be an aspiration—it must be the standard. The future of our food systems, economies, and planet depends on how boldly and swiftly we turn this vision into reality.
