The UNEP report exposes a stark 30:1 imbalance, with nature-harming finance vastly exceeding investments in Nature-based Solutions, deepening the triple planetary crisis. It urges repurposing harmful subsidies and scaling public–private capital. For India, despite CAMPA and Namami Gange, mobilising private finance and reforming subsidies remain key challenges.
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Picture Courtesy: DOWNTOEARTH
The United Nations Environment Programme (UNEP) report titled "State of Finance for Nature 2026" reveals that for every $1 invested in protecting nature, more than $30 is directed towards activities that harm it.
In 2023, global finance heavily favored nature-negative activities, showing a major systemic failure to value natural capital.
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Category |
Annual Financial Flow (2023) |
Key Components |
|
Nature-Negative Finance |
US$7.3 trillion |
|
|
Nature-Positive Finance (NbS) |
US$220 billion |
Investments in Nature-based Solutions (NbS) aimed at protecting, restoring, and sustainably managing ecosystems. |
(Source: UNEP, State of Finance for Nature 2026)
Required Annual Investment: To meet 2030 targets, annual investment in NbS must more than double to at least $571 billion.
Current Spending vs. GDP: Current NbS spending represents a mere 0.5% of global GDP, indicating its low priority in global finance.
Dominance of Public Funds: Public domestic spending accounts for nearly 90% of all NbS finance ($220 billion in 2023), making it vulnerable to government budget cuts.
Low Private Sector Contribution: Private investment in NbS was only $23.4 billion in 2023, held back by perceived risks and a lack of profitable, scalable projects.
Repurpose Harmful Subsidies
Governments must phase out the $2.4 trillion in annual subsidies for fossil fuels and unsustainable agriculture and redirect these funds toward green infrastructure and regenerative practices.
Scale Up Public and Private Investment:
Strengthen Global Frameworks
Nations must align policies with the Kunming-Montreal Global Biodiversity Framework's targets, requiring the redirection of harmful subsidies and mobilizing at least $200 billion annually for biodiversity finance.
Develop High-Integrity Environmental Markets
Robust, transparent carbon credit and biodiversity offset markets, with integrity to prevent "greenwashing," are vital for unlocking private finance and achieving real environmental benefits.
The UNEP report calls for a fundamental shift to address the unsustainable 30:1 imbalance between nature-negative and nature-positive finance, requiring capital redirection and scaling investments to align economic systems with planetary health for a resilient, equitable, and prosperous future.
Source: DOWNTOEARTH
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PRACTICE QUESTION Q. Evaluate the challenges faced by developing nations in transitioning from nature-negative to nature-positive economies. 150 words |
Nature-based Solutions are actions to protect, sustainably manage, and restore natural or modified ecosystems. They address societal challenges like climate change, food and water security, and disaster risk effectively and adaptively, while providing human well-being and biodiversity benefits.
These are government financial supports, primarily for fossil fuels, unsustainable agricultural practices, and inefficient water use, that lead to environmental degradation. The UNEP report estimates these subsidies at $2.4 trillion globally.
It is a landmark global agreement adopted in 2022 to guide global action on nature through 2030. A key target within the framework is to reform and redirect subsidies harmful to biodiversity and mobilize at least $200 billion per year for biodiversity finance from all sources.
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