Private capital has a key role to play in a huge investment in nature states a new report
ESG factors, green bonds, carbon credits; there are many things that investors can do to help make the world a better place.
But private capital must play a key role in a huge investment in nature that is required in the next three decades to tackle some major issues for the sustainability of our planet.
That’s the message from a new report from the UN Environment Programme (UNEP), the World Economic Forum (WEF) and the Economics of Land Degradation (ELD) Initiative, called the State of Finance for Nature.
A total investment of US$8.1 trillion by 2050 – and annual investment of $536 billion by that year – is necessary to tackle the interlinked climate, biodiversity, and land degradation crises.
To put that into perspective, that means annual investment three times its current level by 2030, and four times its current level by 2050.
The report’s authors are urging financial institutions, along with governments and business, to put nature at the centre of economic decision making.
"Biodiversity loss is already costing the global economy 10% of its output each year,” said UNEP Executive Director, Inger Andersen. “If we do not sufficiently finance nature-based solutions, we will impact the capacities of countries to make progress on other vital areas such as education, health and employment. If we do not save nature now, we will not be able to achieve sustainable development."
Others calling for action include the Nature Conservancy of Canada. Two of its board expand on this in a recent article for WP.
New market
The report calls for a market where nature-based solutions access new sources of revenue, increases resilience of commercial activities, reduces costs, or contributes to reputation and purpose. Investors, developers, market infrastructure makers, customers and beneficiaries all have roles to play in creating this market.
"The report is a wake-up call for Governments, financial institutions and businesses to invest in nature -- including reforestation, regenerative agriculture, and restoration of our Ocean," added Anderson.
The full report is at unep.org
