Closing the Financing Gap for Nature: A Call to Action

Nature is in crisis. The loss of biodiversity is accelerating at an alarming rate, and urgent action is needed to reverse this trend. One of the key obstacles to addressing this crisis is the financing gap for nature. We need to be spending an additional $598-824 billion annually to reverse the loss of biodiversity by 2030 – but much of that money can be found by changing existing spending flows.

The recent report, 'Financing Nature: Closing the Global Biodiversity Finance Gap,' highlights the urgent need for increased investment in nature-based solutions. The report, produced by leading organizations such as The Nature Conservancy, Paulson Institute, and Cornell Atkinson Center for Sustainability, emphasizes the importance of redirecting financial resources towards biodiversity conservation and restoration.

State of Finance for Nature

The State of Finance for Nature annual report series provides valuable insights into the finance flows to nature-based solutions (NbS) and compares them to the finance needed to maximize the potential of Nature-based Solutions to help tackle climate, biodiversity, and degradation challenges.

The State of Finance for Nature 2023 report, for example, highlights the need to repurpose $7 trillion to combat nature loss. The report also sheds light on the alarming global annual finance flows of $7 trillion that are fueling climate change, biodiversity loss, and land degradation crises.

Similarly, the State of Finance for Nature 2021 report emphasizes the need to close a $4.1 trillion financing gap in nature by 2050. The current investments in nature-based solutions amount to $133 billion, with most of the funding coming from public sources. To meet the climate change, biodiversity, and land degradation targets, investments in nature-based solutions need to triple by 2030.

Addressing the Biodiversity Funding Gap

Closing the biodiversity funding gap requires a multi-faceted approach. It involves systemic change across all sectors of society, from governments and businesses to individuals. The Post-2020 Global Biodiversity Framework Targets play a crucial role in helping to close the funding gap by setting clear objectives and guidelines for conservation efforts.

National Biodiversity Finance Plans and initiatives like BIOFIN are also instrumental in closing the funding gap. These programs provide guidance and support to countries in developing and implementing strategies to mobilize financial resources for biodiversity conservation.

The Role of Private Capital

While public finance has played a significant role in restoring natural ecosystems, reliance on it alone is no longer sustainable. Private capital has the potential to fill the critical nature investment gap and drive the transition towards a nature-positive future. Overcoming barriers to private nature investment is essential to accelerate finance for nature.

Investors have a crucial role to play in closing the biodiversity funding gap. Over 50% of global GDP is moderately or highly dependent on nature and ecosystem services, making it a strategic and lucrative investment opportunity. By aligning their investments with nature-positive initiatives, asset managers can contribute to both financial returns and environmental sustainability.

A Call to Action

Closing the financing gap for nature requires collective action and collaboration. Governments, businesses, investors, and individuals must come together to prioritize nature conservation and restoration. Here are some key actions that can be taken:

• Increasing public and private investments in nature-based solutions
• Aligning financial flows with nature-positive initiatives
• Supporting the development and implementation of National Biodiversity Finance Plans
• Advocating for policy changes that incentivize nature conservation and restoration
• Engaging in public-private partnerships to mobilize financial resources

By taking these actions, we can bridge the financing gap for nature and create a sustainable future for our planet. Together, we can ensure the preservation of biodiversity and the well-being of future generations.