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State Of Finance For Nature Report 2021

State Of Finance For Nature Report:

 

The UN report, titled State of Finance for Nature, analyzes the investment flow in nature-based solutions (NbS) and identifies the future investment needed to meet the climate change, biodiversity and land degradation targets (set in three Rio Conventions).

  • The report was jointly produced by the United Nations Environment Programme (UNEP), the World Economic Forum and the Economics of Land Degradation.

About the ‘Nature-based solutions (NbS)’:

  • The NbS refers to sustainable management and use of nature to tackle socio-environmental challenges, which range from disaster risk reduction, climate change and biodiversity loss to food and water security as well as human health.
  • NbS creates harmony between people and nature, enables ecological development and represents a holistic, people-centred response to climate change.
  • Thus, NbS underpin the Sustainable Development Goals, as they support vital ecosystem services, biodiversity, and access to fresh water, improved livelihoods, healthy diets and food security (organic agriculture) from sustainable food systems.
  • Also, NbS are an essential component of the overall global effort to achieve the goals of the Paris Agreement on Climate Change.

Key Findings of Report:

  • Approximately USD 133 billion currently flows into nature-based solutions annually (using 2020 as the base year).
  • It comprises about 0.10% of the global gross domestic product.
  • The funds flow to protect biodiversity and landscapes, mixed with activities such as sustainable forestry.
  • NbS finance is much smaller in scale than climate finance and relies more heavily on public finance.
  • Public vs Private Funds:
    • Public funds make up 86% and private finance 14% of these investments.
    • The public financial services providers included the government, development finance institutions (DFIs), environmental/climate funds.
  • Top Spenders:
    • Public sector spending for the same is dominated by the United States and China, followed by Japan, Germany, and Australia.
    • Countries such as Brazil, India, and Saudi Arabia are likely spending large amounts of money too, but they do not report internationally comparable data.

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