Issues and Insights Article, 48th Parliament

Addressing the biodiversity, climate and pollution crises

Complex environmental challenges create risks to natural systems, individuals, communities and the global economic system. While governments around the world grapple with these interconnected crises, what global frameworks exist and what are some of the policy responses that could be used?

Go to section

Key issues

Overlapping and interconnected biodiversity, climate and pollution crises pose major challenges to environmental systems and humanity. They create risks to the global economic system, while also impacting individuals and communities.
Proposals to address the crises include increasing transparency and accountability, and strengthening international cooperation and regulatory frameworks. Other initiatives span nature-based solutions, and economic and industrial reforms incorporating sustainability principles.
Coherent, coordinated and appropriately timed responses that provide regulatory certainty may be best-suited to address these environmental challenges.

Introduction

Biodiversity loss, climate change and pollution are ‘interacting and accelerating global crises’ that pose major challenges to environmental systems and humanity (p. 5). There is also growing recognition that they may cascade into a ‘polycrisis’ (p. ix).

The Intergovernmental Panel on Climate Change (IPCC, the UN’s climate change science body) states that ‘human activities, principally through emissions of greenhouse gases, have unequivocally caused global warming’ (p. 4). The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) also reports that humans’ cumulative and interconnected actions are significantly altering Earth’s systems (p. 3). Moreover, thresholds for 6 (possibly 7) of 9 planetary boundaries that regulate the stability and resilience of the Earth system have now been crossed, increasing ‘the risk of generating large-scale abrupt or irreversible environmental changes’.

Beyond these ecological impacts, the effects of these crises are recognised as risks to the global economy (see The global risks report 2025; Navigating new horizons 2024). Specifically, activities moderately to highly dependent on nature contribute over half of global GDP (US$58 trillion) (p. 5). In the past 50 years, extreme weather, climate and water-related events have caused nearly 12,000 global disasters, leading to 2 million human deaths and $4.3 trillion in total costs. In Australia, natural disasters have an average annual economic cost of $38 billion (p. ii) and their frequency, severity and costs are expected to increase (p. 89).

Given the repeated calls for urgent and transformative action to address these crises, this article describes their interconnections and drivers. It maps out relevant international policy frameworks and describes their implementation in Australia. Finally, it summarises further policy options and highlights recent developments.

Complex and interconnected crises

Biodiversity loss

Biological diversity (biodiversity) describes the variety of living organisms on Earth. Unique combinations of these organisms make up the hundreds of ecosystems around the world. Biodiversity provides essential ecosystem services, such as climate regulation, flood regulation, pollination, soil formation and water purification, worth trillions of dollars each year. Biodiversity also has intrinsic value and holds particular significance for indigenous communities (p. 18).

Biodiversity loss is primarily a result of habitat destruction and degradation, overfishing and pollution. Changes to terrestrial ecosystems have resulted in the loss of forests, wetlands and grasslands – with impacts on carbon absorption and storage. It also threatens an estimated one million species with extinction (p. 12).

Climate change

Climate change refers to ‘a change of climate that is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’. It is primarily driven by burning fossil fuels for energy, industry and transportation (p. 4). The ensuing greenhouse gas emissions comprise over 75% of global emissions, and reached record highs in 2024.

A 2022 IPCC assessment found that climate change ‘has caused widespread adverse impacts and related losses and damages to nature and people, beyond natural climate variability’ (p. SPM-7). Climate change ‘amplifies natural weather and climate phenomena, intensifying their severity and causing extreme events [such as droughts, floods, crop failure, heatwaves and wildfires] to become more widespread globally’ (p. 2). It directly drives biodiversity loss (p. 3), and is ‘responsible for between 11% and 16% of biodiversity loss’ (p. 8). There is also growing recognition of the contribution to and impact of climate change in urban areas and cities, including impacts on infrastructure, health systems and human wellbeing.

Pollution

Pollution refers to the release of contaminants into the air, water and soil. It has been called ‘the greatest preventable form of mortality’ (p. 2). Sources of pollution include industrial discharges, heavy metals, agricultural and veterinary chemicals, microplastics and sediment. These can increase human and environmental exposure to persistent, bioaccumulative and toxic chemicals (p. 121). In 2024, the International Tribunal on the Law of the Sea recognised that anthropogenic greenhouse gases are a marine pollutant which result in deleterious effects on the marine environment [para 178].

Global frameworks and domestic implementation

The Convention on Biological Diversity (agreed at the 1992 Rio Earth Summit) aims to conserve biodiversity, promote the sustainable use of its components, and ensure the benefits from the world’s genetic resources are shared fairly and equitably. The convention requires parties to develop national strategies, policies and programs through National Biodiversity Strategies and Action Plans (NBSAP). It also requires that parties’ activities do not damage the environment in other states or areas beyond their jurisdiction. In 2022, parties to the convention adopted the Kunming-Montreal Global Biodiversity Framework (GBF). Noting ‘the continued loss of biodiversity and the threat that this poses to nature and human well-being’, the GBF sets a vision that:

By 2050, biodiversity is valued, conserved, restored and widely used, maintaining ecosystem services, sustaining a healthy planet and delivering benefits essential for all people.

The GBF established 4 goals and 23 targets, to be reflected in parties’ NBSAPs. The Australian NBSAP, Australia’s strategy for nature 2024–30, incorporates several goals consistent with the GBF. These include a commitment to protect and conserve 30% of Australia’s terrestrial and marine areas by 2030 and no new extinctions.

The United Nations Framework Convention on Climate Change (UNFCCC) was also agreed at the Rio Earth Summit. This framework seeks to ‘stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system’. The Kyoto Protocol and Paris Agreement imposed specific obligations, with the latter also providing for mitigation and adaptation (including nationally determined contributions and adaptation plans) and loss and damage.

The Australian Government formalised its greenhouse gas emissions reduction targets in the Climate Change Act 2022. Additional policy measures are also being implemented at the Commonwealth and state/territory levels.

While the UNFCCC and Paris Agreement address greenhouse gases, other international agreements address other major forms of pollution. The Australian Government has acted on several agreements, including those relating to hazardous waste, marine pollution, ozone depleting substances and persistent organic pollutants.

Potential policy responses

Numerous international reviews suggest that interdependencies between different elements of the biodiversity, climate and pollution crises offer opportunities for synergistic and coherent policy responses. These can in turn advance global efforts aligned with the Paris Agreement, GBF and the Sustainable Development Goals.

Increasing transparency and accountability

There has been a ‘profound and accelerating shift’ in the way that corporate regulators, organisations and the public perceive climate change and nature-related risks (p. 2). Specifically, recent legal opinions have highlighted company directors’ duties relating to climate and nature-related risks. Investor groups have also sought improved and more consistent disclosure of relevant climate-related information. These groups, alongside various NGOs, are increasingly alert to potential misleading claims (‘greenwashing’).

Environmental, social and governance reporting is ‘driving the biggest changes to financial reporting and disclosure standards in a generation’. For example, the International Sustainability Standards Board provides a comprehensive baseline of climate‑related financial disclosures, leveraging analysis from the Taskforce on Climate-related Financial Disclosures and Global Reporting Initiative. In addition, the Taskforce on Nature-related Financial Disclosures ‘has developed a set of disclosure recommendations and guidance that encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities’.

Many jurisdictions have now adopted climate-related reporting requirements, albeit with some differences around indirect (scope 3) emissions requirements. Consistent with the Australian Government’s ‘“climate first” approach’, new climate-related disclosure requirements came into effect on 1 January 2025, with additional businesses to be captured over a phase-in period.

Strengthening international cooperation and regulatory frameworks

The global scale of the environmental crises ideally requires active participation and cooperation through existing and strengthened multilateral organisations across all levels of government (p. 24). Current frameworks recognise members’ unique circumstances and support collaboration through mitigation, adaptation and responses to loss and damage, especially in least developed states. However, funding commitments to date have been described as ‘too little too late’. Notably, the International Court of Justice is expected to release an Advisory Opinion on state obligations in respect of climate change in early 2025. Although not legally binding, these opinions have moral weight, will clarify countries’ international obligations and may influence the existing international legal order.

Since the 1970s, ecologically sustainable development and the precautionary principle have been hallmark principles of environmental law. They are incorporated into the objects of Australia’s principal national environmental law, the Environment Protection and Biodiversity Conservation Act 1999. However, a recent review found the Act outdated, failing to achieve its objectives and requiring fundamental reform.

Addressing the biodiversity crisis requires enacting (or enhancing) and enforcing regulatory frameworks that benefit nature (p. 9). Innovative and evidence-based regulatory tools (such as tradeable permits and landscape scale planning) alongside an increase in the availability and quality of data, and stronger enforcement mechanisms, can be used to limit the impact of environmentally harmful activities and achieve nature-positive outcomes.

Promoting nature-based solutions

Nature-based solutions (NbS) have emerged as an innovative approach to tackling the crises. These have been defined as ‘actions to protect, sustainably manage and restore natural or modified ecosystems, which address societal challenges effectively and adaptively, while simultaneously providing human well-being and biodiversity benefits’ (p. 2). This includes restoring coastal ecosystems and developing urban green infrastructure.

NbS are consistent with the GBF and can potentially (though debatably) contribute to climate change mitigation. Best-practice NbS are based on inclusive, transparent and empowering governance processes. They also offer opportunities to recognise and integrate with indigenous traditional ecological knowledge and achieve more equitable outcomes.

Economic and industrial reform

There are various options proposed to deliver a sustainable economy that mitigates and meets the world’s environmental challenges. These include polluter-pays arrangements, the delivery of key infrastructure and research, and recognising the economic value of biodiversity and ecosystem services to ensure net ‘environmental gain’.

In addition to these and other responses below, further innovation and research support may be required. For example, achieving net negative emissions will require carbon dioxide removal technologies (p. 19). Addressing waste and pollution challenges will also require sustainable resource consumption and production practices, recycling technology investment and the development of a circular economy.

Supporting the transition to a zero- and low-carbon economy

A key focus of the Paris Agreement is to reduce greenhouse gas emissions. During 2023, parties agreed ‘to contribute to … accelerating efforts towards the phase-down of unabated coal power … [and] transitioning away from fossil fuels in energy systems’ (p. 5). As such, sector specific (e.g. green manufacturing and transport) planning through coherent and stable policy may support more equitable outcomes across stakeholders and communities through the transition.

Further discussion of changes and challenges in global trade and Australia’s electricity system is provided in accompanying Issues & insights articles.

Eliminating subsidies for environmentally harmful activities

Despite a significant portion of global GDP being vulnerable to environmental risks, many governments directly or indirectly subsidise environmentally damaging actions. For example, the International Monetary Fund estimates global fossil fuel subsidies were US$7 trillion, or 7.1% of GDP, in 2022. Of this, 82% comprised implicit subsidies for undercharged environmental costs and forgone consumption taxes.

In 2009, the heads of the G20 (and separately APEC) pledged to ‘rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption’ (p. 14). The 2021 UNFCCC Glasgow Climate Pact also encouraged parties to accelerate efforts to phase out inefficient fossil fuel subsidies. Similarly, under the GBF parties committed to identify, eliminate, phase out or reform subsidies that harm biodiversity, and progressively reduce them by $500 billion each year by 2030. Removing such subsidies may redirect investment towards strengthening resilience, restoring ecosystems and supporting more equitable outcomes.

Conclusion

Calls continue globally for urgent action addressing biodiversity loss, climate change and pollution. However, substantial challenges remain, with the latest UNEP Emissions gap report highlighting the urgency with which action is required, and ongoing global challenges to protect biodiversity and conserve natural ecosystems. Recent assessments also highlight that environmental issues can potentially erode social cohesion and increase societal polarisation. Australia will need to navigate these global challenges within complex and changing geopolitical, economic and environmental conditions.