The report highlights a global financial imbalance in spending, skewed towards nature-negative finance in comparison to nature-positive finance.
- Nature-positive finance are investments in activities promoting environmental conservation. E.g. Nature-based Solutions (NbS)
- Nature-negative finance are investments that potentially degrade natural infrastructure. E.g. Environmentally Harmful Subsidies
Key Highlights of the Report
- Massive Funding Gap: In 2023, finance for nature-negative activities reached $7.3 trillion (30 times higher), while investment in nature-based solutions (NbS) was just $220 billion.
- Public-Private finance gap: 90% of NbS finance is public finance while private finance is concentrated in high-impact sectors like fossil fuels, heavy industry, etc.
- Investment Need: To meet the Rio Convention targets (limiting warming to 1.5°C and halting biodiversity loss), annual NbS investment must increase by >2.5 times to $571 billion by 2030.
- Key Recommendations: Redirecting capital flows away from nature-negative activities, reforming harmful subsidies, Mandating disclosure of nature-related risks, Expanding blended finance and de-risking investments to mobilise private capital.
About Nature Based Solutions (NbS)
- NbS leverage nature and the power of healthy ecosystems to address societal challenges through actions to protect, sustainably manage, and restore natural and modified ecosystems, benefiting people and nature at the same time.
- E.g. Protecting and restoring coral reefs, Building greener cities, etc.
Key Initiatives for NbSGlobal
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