Reframing biodiversity markets for sustainable agriculture: a systematic review and governance framework for effective nature-positive outcomes

Biodiversity markets are gaining global attention as innovative mechanisms to mobilise private finance for conservation and support nature-positive transitions in sectors such as agriculture. Yet, empirical evidence on their design, effectiveness, and governance remains fragmented. This study presents a systematic review of biodiversity market literature, combining PRISMA-based screening of 671 peer-reviewed articles with bibliometric mapping and thematic synthesis. The review focuses on peer-reviewed studies with accessible full texts, which may have excluded some relevant literature. We traced the evolution of biodiversity market discourse beyond offsets to emerging credit systems, stacked financing models, and nature-positive outcome frameworks. The analysis reveals major challenges, including the absence of robust ecological metrics, inconsistent governance arrangements, and limited attention to equity in market design. It also highlights mounting concerns, raised across the literature, about greenwashing and the credibility of market-based claims. Without robust design and transparent oversight, biodiversity markets risk undermining conservation goals and public trust. Our findings underscore the urgent need for more rigorous, transparent, and evidence-based approaches to ensure biodiversity finance mechanisms deliver real, measurable ecological outcomes. In response, we propose a five-pillar governance framework to guide future biodiversity market development: (1) policy and institutional anchoring, (2) inclusive governance, (3) scientific and ecological integrity, (4) fit-for-purpose financial mechanisms, and (5) place-based implementation. This framework offers practical guidance for designing credible, equitable biodiversity markets that support long-term stewardship and sustainable land use.