Global biodiversity deal showcases Chinese diplomacy

Significance

The stakes were high: the world faces a biodiversity crisis and previous decadal targets were all missed. There was a high risk that negotiations would collapse due to deep disagreements over financial obligations between developed and developing countries. The imperfect but ambitious agreement finally reached was due in large part to China’s leadership.

Impacts

• Attention to the environmental impact of Chinese overseas infrastructure construction will grow; China will promote a 'Green Belt and Road'.
• China Development Bank and China Eximbank will increase scrutiny of biodiversity risks in their lending.
• Pressure will rise for Chinese firms to align with global ESG standards.
• China will explore the use of 'debt-for-nature' or 'debt-for-biodiversity' swaps with debtor countries in the Global South.