Attachments
Forewords
The world has changed dramatically since the first “State of Finance for Nature” report was published in 2021. War and extreme weather have caused devastation and immeasurable human suffering, and economic recession looms with inflation increasing rapidly. Food, energy and supply chain security have shot to the top of the political agenda. A growing number of people, including in developed countries, must choose between food on the table or paying energy bills. Meanwhile, natural assets continue to deteriorate due to chronic undervaluation of natural systems and systemic unsustainable production and consumption.
The scientific evidence on the trajectories and costs of climate change, biodiversity loss and land degradation is undeniable and continues to accumulate. The impacts are large and visible as people suffer from droughts and floods, the conversion of nature that provides food, water and medicine to people and falling agricultural output due to land degradation.
From the massive floods in Pakistan to the dried-up rivers across Europe and China, to the collapse of the Conger ice shelf on East Antarctica and the dwindling state of coral reefs, human activity is driving the decline of the natural environment. This in turn is causing growing impacts on businesses, finance institutions and economies around the world.
The big question that humanity faces at this pivotal moment is how to transform our economic systems, including processes of production and consumption, to ensure that we remain within planetary boundaries, limit climate change, and reverse the loss of nature and endangered species. How do we ensure economic growth while supporting human development and equality, mitigating and adapting to climate change and protecting the natural assets that underpin human well-being? Nature is the essential algorithm for the future of humanity.
Following COP 27 on climate change and ahead of COP 15 on biodiversity to be held in December, the State of Finance for Nature report highlights the need to significantly increase finance and investment in nature-based solutions. Finance will undoubtedly be a sticking point, but something that will have to be dealt with head on given the nexus of multifaced crises.
While nations around the world are concluding negotiations on a post-2020 Global Biodiversity Framework, we must keep in perspective the broader economic and social landscape. Stock markets are volatile with energy and food price inflation, as economies continue to reel from the toll of Covid-19. This poses governance and stability risks in regions prone to food insecurity, affecting the world’s poorest and most vulnerable.
With no end in sight to the current state of uncertainty, it is important to get back to the basics: the survival of all life on earth. “Net zero” without “nature positive” simply won’t make it. Heads of State together with business and finance leaders have an obligation to both the present and future generations to increase investment into nature-based solutions. We must collectively and urgently redirect and scale capital to nature, climate and restoration-positive activities that bring us back on track towards a stable and natureabundant planet that we can all equitably benefit from.