Following the UN Climate Conference (COP 27) and ahead of the UN Biodiversity Conference (COP 15) in Montreal in December 2022, the State of Finance for Nature report underpins that with sufficient finance, nature-based solutions provide benefits that contribute to climate, biodiversity and land restoration goals in an integrated manner while also promoting human wellbeing. This ‘triple’ win potential is particularly alluring given the current global economic situation. Yet, nature-based solutions are significantly under-financed, revealed the report.
GFFN is working to raise ambition and drive action to address critical challenges to mobilizing finance for food systems transformation. According to the SFN report, immediate action is needed from public and private actors to scale up annual investments in NbS over the next three years to close the finance gap by investing an additional US $230 billion per year. By 2025, annual investment in Nature based solutions (NbS) needs to increase to US $384 billion, more than double the finance currently flowing into NbS (US $154 billion) and by 2050, annual investments need to reach US $674 billion, four times current investment levels.
The report is the second in a series that aims to quantify public and private finance flows to nature-based solutions and the extent to which finance flows are aligned with global targets and the investment needed to limit global warming to below 1.5°C, halt biodiversity loss and achieve land degradation neutrality. It has a broader scope than the inaugural report in 2021.
The State of Finance for Nature report has been produced by GFFN Partner – UN Environment Programme, and the Economics of Land Degradation (ELD) Initiative – hosted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) – in collaboration with Vivid Economics by McKinsey.