Earth Today | Turning the tide on nature-negative investments

FINANCE FLOWS to the tune of close to US$7 trillion are being channelled into sectors and activities that are bad for nature, while investments in nature-based solutions lag.

This is according to the recently published State of Finance for Nature report of the United Nations Environment Programme (UNEP), Global Canopy and the Economics of Land Degradation Initiative.

Some US$1.7 trillion of the US$7 trillion, the report revealed, is from public funding to environmentally harmful subsidies; and US$5 trillion, private finance flows with a direct negative impact on nature.

“Tracked nature-negative public finance flows are estimated at US$1.7 trillion in 2022, a 55 per cent increase from 2021 levels and more than 10 times greater than public finance flows to nature-based solutions of US$165 billion,” the report explained.

“This increase is despite documented inefficiencies and negative impacts on nature and climate of environmentally harmful subsidies, and despite commitments to reform and repurpose environmentally harmful subsidies under the Rio and other conventions,” it added.

The estimate includes measured public subsidies for nature-negative activities in 2022 in four sectors, notably agriculture, fossil fuels, forestry and fisheries.

“In 2022, roughly 90 per cent of tracked negative public flows were directed towards energy (US$1.16 trillion, or 69 per cent) and agriculture (US$0.35 trillion, or 20 per cent),” the report revealed.

CONSEQUENCES

According to the report, the time to turn things around is now, underscored by the pressing realities of reported accelerated biodiversity loss and land degradation, rising greenhouse emissions and associated temperature increases, as well as impacts on economic growth, food security and public health.

“The consequences of insufficient action to tackle climate change, biodiversity loss and land degradation are becoming clearer. Even though greenhouse gas emissions need to fall by 45 per cent this decade, emissions of carbon dioxide, methane and nitrous oxide reached their highest levels ever in 2021,” the 2023 report said.

“Without immediate reductions in emissions, many people will by 2070 be exposed to average annual temperatures warmer than nearly anywhere today. These conditions are currently experienced by just 0.8 per cent of global land areas, and they mostly occur in the hottest parts of the Sahara Desert. By 2070, these conditions could spread to 19 percent of global land areas, potentially affecting over three billion people (Xu et al, 2020) and leading to mass involuntary migration and serious socio-economic upheaval,” it added.

“Extreme weather events, including floods, droughts, wildfires, storms and extreme temperatures are increasing in frequency and intensity. By mid-century, the world stands to lose 11–14 per cent of GDP [gross domestic product] based on the current trajectory of 2 degrees Celsius to 2.6 degrees Celsius (according to the Swiss Re Institution, 2021),” the report said further.

It requires, the document said, implementation of global commitments to “reverse biodiversity loss and land degradation, as well as to urgently reduce emissions while scaling up efforts to support adaptation and mitigation, particularly for vulnerable communities”.

The potential benefits, the report predicted, are immense. For example, the report said the current trend of rapid biodiversity loss will continue, “with 37 per cent of species threatened or extinct by 2100. However, this share could drop to 25 per cent if conservation investments are immediately increased”.

“Biodiversity provides enormous economic benefits. Campaign for Nature estimated the economic benefits from achieving the 30x30 target of up to a US$454-billion increase in annual revenues from protected areas and nature, agriculture, forestry and fisheries,” the report said.

“The economic benefits of sustainable land management could be as high as US$75.6 trillion annually, with improved food production worth up to US$1.4 trillion. Restoring natural ecosystems can be very cost-effective – restoring grasslands can have a benefit/cost ratio as high as 35 … , Restoration promotes sustainable livelihoods by supplying clean water, providing biomass fuel and producing forest products,” it added.

pwr.gleaner@gmail.com