The global climate is in a state of flux. Climate change has caused many natural disasters that have put the world’s population at risk. From hurricanes to flooding, these events are happening more frequently and with greater intensity due to changing weather patterns which scientists attribute to a variety of factors, one being an $8.1 trillion funding deficit in nature-based solutions for climate.
Unsustainable economic growth has had significant consequences for ecosystems, and we need a shift in how we perceive our relationship with nature.
We should understand and appreciate that nature holds solutions to many of society’s challenges: water quality, temperature regulation, the food we eat, the clothes we wear.
In this article, we will discuss how the lack of investment in nature-based solutions threatens our ability to maintain healthy ecosystems on Earth and protect people from severe weather events like floods, storms, and wildfires caused by climate change.
The UN’s “State of Finance for Nature” identified the need for an $8.1 trillion in investment to safeguard natural systems.
UNEP climate finance unit head Ivo Mulder says it is time for countries to turn their financial attention towards solutions that benefit people and planet.
“It is more an opportunity to see how can you continue to do business, how can governments continue to grow economically, but do so in a way that is more equitable and sustainable.
Annual investment in nature-based solutions for climate totalled $133 billion in 2020, with 86% coming from public funds and the remaining 14% coming from private finance.
The report by UNEP, the World Economic Forum and the Economics of Land Degradation Initiative found that among government expenditures, there was a need for diversity protection and forest restoration.
Nature-positive incentives
One of the report’s recommendations was the introduction of nature-positive incentives.
The paper suggested that there should be a tax on activities leading to land degradation, and an incentive for actions that mitigate or avoid climate change impacts. It went on: “Taxing emissions from fossil fuel use can also generate revenues necessary for expenditure in sustainability solutions.”
Nature-based solutions for climate change will only work if governments’ policies and investments, in addition to the private sector’s cooperation.
Although the amount of money directed to nature-based solutions (NbS) is growing, there isn’t enough data on how much investors should be directing their capital to NBS.
Other Recommendations
The World Resources Institute (WRI) on Wednesday said businesses should invest more in sourcing sustainable goods and creating new revenue streams through forest carbon markets, presenting an alternative to net-zero emissions goals.
Banks need to think about the negative impacts of their lending. And that will help nature and our climate.
Firms that destroy nature are risking their reputation. And people are getting worse weather like droughts and floods.
In a report last year, it was estimated that $722 to $967 billion would be needed each year to stop the decline of biodiversity.
Mulder said that the estimate in the new UN report was an underestimate because it only considered land-related investments and excluded ocean funding. He called it a “starting point” for tracking how much money is being invested in nature-based solutions to climate change.
Research by Global Canopy suggests that the global market for biodiversity conservation is not being met with sufficient finance. Estimates suggest that a total of $854bn in annual funding will be needed to halt natural degradation, but just $130bn per year is coming from public and philanthropic sectors organizations.
