Investing $8.1 Trillion In Nature By 2050 Will Slow the Impact of Climate Change

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A new report found that investing less than 1% of global GDP in nature-based solutions can help combat climate change and halt biodiversity loss. Investments in these solutions currently amount to $ 133 billion, equivalent to 0.10% of global GDP. And if governments and people want to achieve their climate protection goals, a total of 4.1 trillion US dollars will be needed to close the funding gap in nature by 2050.

According to the State of Finance for Nature report, a total of $ 8.1 trillion will be invested in nature over the next three decades to tackle climate change, the land degradation crisis, and biodiversity loss, all of which will be off by 2050 U.S. investments quadruple $ 133 billion (with 2020 as the base year), which means $ 536 billion should be invested every year through 2050.

The report was prepared by the World Economic Forum (WEF), the United Nations Environment Program (UNEP) and the Economics of Land Degradation (ELD) initiative of the German Society for International Cooperation (GIZ) in partnership with Vivid Economics.

Funding Nature Solutions

Given that nature accounts for 2.5% of projected stimulus spending, the report urges governments, financial institutions and corporations to fill this $ 4.1 trillion funding gap by 2050 by using nature as a Recognize solution and increase capital flows by putting nature at the center of public and private sector decision making.

Big structural changes are needed, such as shifting harmful subsidies for agriculture and fossil fuels to renewable energies, Providing financial and regulatory incentives for those who build sustainably, generating income from ecosystem services, introducing mixed funding models to bring in private capital to implement these solutions, which also requires risk-sharing by private sector companies.

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“The Financial Condition for Nature Report underscores the urgency and importance of increasing investment in nature. It shows how little is being invested today – $ 133 billion represents just 0.1% of global GDP, and tripling that is a breeze given the increased resilience that would mean for the global and local economies, ” said the head of the Tropical Forest Alliance at the WEF, Justin Adams said in a statement. “Studies show that this is also good for business – some $ 10 trillion in business opportunities and 395 million new jobs could be created by investing in nature-positive solutions. “

The reports highlight how little is being invested today – $ 133 billion represents just 0.1% of global GDP, and tripling that is a breeze given the improved resilience that would mean for the global and local economies

Justin Adams, head of the Tropical Forest Alliance at the WEF

Forest-based solutions

Forest-based solutions such as forest maintenance, conservation and restoration will require a total of $ 203 billion in 2021, which equates to a little more than $ 25 a year for each citizen in 2021. The report underscores the need for both – investing in Restoration efforts as well as the financing of nature conservation projects that could lead to an increase in forest and agroforestry area by around 300 million hectares by 2050 compared to 2020.

The Executive Director of UNEP, Inger Andersen, said that the biodiversity crisis is costing the world economy 10% of its production annually anyway. “If we do not adequately fund nature-based solutions, we will undermine countries’ capacities to make progress in other important areas such as education, health and employment. If we don’t save nature now, we won’t be able to achieve sustainable development. “

In 2018, the private sector invested $ 18 billion in nature-based solutions, with only 14% making up private funding, which comprised everything from private equity investments, biodiversity offsetting, capital mobilized through sustainable agricultural and forestry supply chains, and carbon Includes markets related to land use.

Andersen added, “The report is a wake-up call for governments, financial institutions and corporations to invest in nature – including reforestation, regenerative agriculture and restoring our ocean.” The upcoming summits on climate, biodiversity, land degradation and food systems as well as the UN Decade for the Restoration of Ecosystems (2021-2030) will have the opportunity to do so. . “

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Private sector funding

According to the Climate Policy Initiative, private sector investments in climate finance account for the largest flow of capital (56%) and increasing that capital for natural solutions is a challenge the world must focus on in order to fuel sustainable economic growth.

Investing in nature-based solutions does not lead to a deep decarbonization of all sectors, but if investors, developers and consumers help develop a market in which these solutions can open up new sources of income and commit to financing with clear, timely commitments Its goals can help mitigate the effects of climate change.

Mission statement – Lake in Alberta, Canada courtesy of James Wheeler / Pixabay.

source https://dailyhealthynews.ca/investing-8-1-trillion-in-nature-by-2050-will-slow-the-impact-of-climate-change/