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March 06.2025
2 Minutes Read

State of Finance for Nature 2023: Reshaping Investment for Our Planet

Conceptual illustration of finance's impact on nature in 2023.

Funding the Future: Understanding Nature-Based Solutions

As the climate crisis accelerates, the latest State of Finance for Nature 2023 report provides a critical insight into the financing strategies that could bolster our nature-based solutions (NbS). For the first time, this comprehensive report has quantified the global scale of nature-negative finance flows—activities that harm the planet—totaling an alarming $7 trillion, which is about 7% of the world’s GDP.

The Investment Dilemma: Where Do We Stand?

In addressing the pressing issues of climate change and biodiversity loss, the report underscores a striking gap: current financing for NbS stands at only $200 billion, a mere fraction of the $384 billion annually needed by 2025. This shortfall is made even more acute against a backdrop of rising environmental harm from public and private sectors, with subsidies for harmful activities jumping by 55% to around $1.7 trillion.

The Path Forward: Opportunities for Change

Implementing effective NbS has the potential to not only slow down but reverse the degradation of our ecosystems. The report sets ambitious targets, aiming for the protection of 30% of land and sea by 2030, and restoring land degradation neutrality. Strikingly, investing in NbS isn't just about recovery; it’s a lucrative opportunity for investors seeking cost-effective, sustainable solutions that benefit both the environment and the economy.

Rethinking Funding: The Big Nature Turnaround

Transforming the nature-negative finance sector into one that supports NbS is crucial. The report advocates for governments and private investors to redirect their funds into sustainable practices, emphasizing that moving forward, investment strategies must align with global environmental goals. This turnaround is essential for ensuring a resilient planet that can sustain future generations.

Final Thoughts: The Call to Action

With the 2023 edition of the State of Finance for Nature bringing to light stark realities and actionable insights, the onus is on decision-makers, businesses, and individuals alike to champion the cause of nature-based financing. As discussions on climate accountability ramp up globally, it’s time to repurpose our financial flows to protect our planet.

Sustainable Africa

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