Report released at the COP28 says that finance directed towards nature-harming businesses increased 30x since 2022
The report underscored the need to transition to sustainable business activities. Pic/Getty Images
Close to USD 7 trillion is invested globally each year in activities that have a direct negative impact on nature from both public and private sector sources—equivalent to roughly seven per cent of global Gross Domestic Product (GDP), the State of Finance for Nature report released on Saturday at COP28 by the UN Environment Programme (UNEP) and partners.
ADVERTISEMENT
The report finds that in 2022, investments in nature-based solutions totalled approximately USD 200 billion, but finance flows to activities directly harming nature were more than 30 times larger. It exposes a concerning disparity between the volumes of finance to nature-based solutions and nature-negative finance flows, an
d underscores the urgency to address the interconnected crises of climate change, biodiversity loss, and land degradation.
“Nature-based solutions are dramatically underfunded. Annual nature-negative investments are over 30 times larger than financing for nature-based solutions that promote a stable climate, and healthy land and nature. To have any chance of meeting the sustainable development goals, these numbers must be flipped—with true custodians of the land, such as indigenous peoples, among the chief beneficiaries,” UNEP Executive Director Inger Andersen said.
The findings are based on an analysis of global financial flows, revealing that private nature-negative finance flows amount to USD 5 trillion annually, 140 times larger than the USD 35 billion of private investments in nature-based solutions. While public funding will continue to play a critical role, private finance can potentially increase its share of nature-based finance from 18 per cent currently to 33 per cent by 2050.
The report suggests simply doubling or tripling investment in nature-based solutions will not be sufficient to reach the three Rio targets unless the almost USD 7 trillion finance flows to nature-negative practices are dramatically reduced and ideally repurposed in favour of nature. A major turnaround for nature is needed.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
