Climate change is driving an unprecedented decline in global biodiversity, with far-reaching economic consequences that remain underestimated in policy and business decision-making. As temperatures rise and ecosystems degrade, the loss of species and habitats is triggering cascading financial impacts across key sectors. Thus, this paper examines the hidden economic costs of biodiversity loss linked to climate change, revealing how ecosystem collapse threatens food security, increases disaster risks and destabilizes industries. The mass extinction disrupts critical ecosystem services that underpin economic activity. For instance, pollinator losses endanger annual crop production, while collapsing marine ecosystems could reduce global fisheries. Similarly, the degradation of coral reefs leaves coastal communities vulnerable to storms and erodes tourism revenue. The economic risks extend beyond primary industries. Biodiversity loss heightens financial system vulnerabilities, with central banks and insurers increasingly recognizing it as a systemic threat. Degraded landscapes diminish asset values in agriculture and forestry, while species extinction limits biotechnological innovation, including life-saving medical research. Furthermore, nature’s declining capacity to buffer disasters such as floods and wildfires imposes growing costs on governments with crippling economic impacts. Thus, addressing the biodiversity-climate-economic nexus is not merely an ecological imperative but an urgent financial need.