State of Finance for Nature 2022 Report

December 7, 2022

The State of Finance for Nature report was released by the UNEP along with the Economics of Land Degradation initiative of Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), the UNCCD, and the European Commission. It was released 10 days after the conclusion of the COP27 and a week before the start of the UN Conference on Biodiversity (COP15 CBD) in Montreal.

What are the key findings of the report?

Various global crises caused by climate change, degradation of biodiversity and land degradation can be addressed only if the financing for nature-based solutions (NbS) is doubled and funding for activities that are contributing the increase in greenhouse gas emissions is curbed.
The current global investment in NbS is 154 billion USD per annum. This needs to be increased to 384 billion USD by 2025.
The investments in economic activities that are increasing GHG emissions are 3 to 7 times higher than the investments in NbS.
Subsidies for economic activities that are harmful for the environment is highest in energy sector. It is estimated to range between 340 billion USD per annum to 530 billion per annum. In agriculture sector, the subsidies are estimated to be around 500 billion per annum. The report recommended the phasing out of these subsidies.
The short-term efforts targeting GDP growth of economies without considering their impact on nature can impose a greater cost on both present and future generations.
There is a need for private investments in nature-based solutions, which is currently just 17 per cent. Private entities can combine Net Zero with nature positive.
The report called on private organizations to create a sustainable supply chain, reduce dependence on activities that are adversely affecting the climate and biodiversity, offset any unavoidable activities through high-integrity nature markets, pay for ecosystem services and invest in activities that are nature-friendly.

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