UN report calls for four-fold increase in investments in nature-based solutions
The world faces a $ 8.1 billion funding gap in nature to help tackle the climate crisis and ecological degradation, according to a new UN report that warns that annual investments in ground-based solutions on nature (NbS) must be quadrupled by 2050.
the Stat of Finance for Nature Report of the United Nations Environment Program highlights the massive financial gap facing nature-based solutions, which can help tackle climate change if sufficiently supported.
The report found that current investments in NbS amount to $ 133 billion – 0.10 percent of global GDP – most of which comes from public sources. However, up to $ 4.1 billion is needed by 2030, rising to $ 8.1 billion in 2050, a four-fold increase.
Up to $ 203 billion per year is needed for forest-based solutions, with peatland and mangrove restoration also highlighted as critical NbS requiring solutions. Marine environment solutions such as seagrass beds were not covered by the report but will be included in future editions.
The report also estimates that annual investments in NbS will need to reach $ 536 billion per year by 2050.
Currently, more than half of total global GDP is “moderately or strongly dependent on nature,” the report notes. Sectors such as agriculture, food and drink and construction all depend on nature and generate $ 8 billion in gross value added. However, the report adds that nature only accounts for 2.5% of the economic stimulus spending expected after Covid-19.
Inger Andersen, Executive Director of the United Nations Environment Program and Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, say in the foreword: “No one can doubt that we are in a global emergency. . The interrelated crises of biodiversity loss, land degradation and climate change – driven by unsustainable production and consumption – require urgent and immediate global action.
“The results are clear: we are not investing enough in nature. Indeed, investments in nature-based solutions will need to triple by 2030 and quadruple by 2050 if we are to have any chance of solving the planetary emergency. “
The new report echoes findings from the Green Purposes Company (GPC), which recently detailed how a $ 700 billion investment gap in NbS needs to be bridged in order to meet broader goals of net zero and fight against the climate crisis.
Global Canopy research suggests that there is a $ 700 billion in annual funding gap towards the conservation of biodiversity. Estimates suggest that funding for this market will reach $ 854 billion per year by 2030 to stem natural degradation, but only $ 130 billion per year, and mostly provided by public sector and philanthropic organizations, is provided.
As such, the report calls on governments, investors and businesses to work together to create fundraising frameworks in NbS. According to the report, 200 global projects had a total disclosed value of around $ 1.5 billion, suggesting long-term value for those supporting the market.