State of Finance for Nature Report 

Why in News?

• The second edition of the State of Finance for Nature report was recently released.

Highlights

• The report was released jointly by the UN Environment Programme (UNEP) along with the Economics of Land Degradation initiative of the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany, the United Nations Convention to Combat Desertification (UNCCD) and the European Commission.
• Current public and private financial flows to NbS are estimated to be USD 154 billion per year.
• Public funds make up 83% of the total and the private sector contributes approximately 17%.
• Total finance flows to NbS have increased by USD 3.9 billion from USD 150 billion (SFN 2021) to USD 154 billion per year.
• This represents year-on-year growth in investment of 2.6% in real terms across the sum of public and private financial flows.
• SFN 2022 broadened the scope by including marine nature-based solutions and detailed assessment of protected area finance.
• Finance flows to marine NbS are roughly USD 14 billion, 9% of total (terrestrial and marine).
• Annual domestic government expenditure in marine NbS is over USD 10 billion per year, including spending on marine protected areas, sustainable management of fisheries and research and development of fisheries
• Without an increase in investments in nature-based solutions to USD 384 billion/year by 2025, the goals of climate change, biodiversity, and land degradation will not be met.
• There is a need to double the funding for NbS and reduce it for activities that increase Greenhouse Gas Emissions (GHG).
• 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.