The world spends more money harming nature than in efforts to protect it

The world spent about Sh1 quadrillion in 2022 in products and activities that destroy forests, wetlands and other natural habitats, compared to about Sh31.3 trillion that was spent on efforts to ensure a healthy ecosystem.

These findings are from a report by the United Nations Environment Programme (Unep) obtained from analysing global financial flows. The report states that governments contributed 82 per cent of the Sh31.3 trillion (Sh25.8 trillion) while private institutions contributed 18 per cent (about Sh5.4 billion.) The report also details that governments spent about Sh266 trillion on environmentally harmful subsidies across agriculture, fossil fuels, fishery and forestry in 2022.

The analysis showed that private nature-negative finance flows amount to Sh782 trillion annually and that five industries channelling most of the negative financial flows are construction, electric utilities, real estate, oil and gas, and food and tobacco. This represents 16per cent of overall investment flows in the economy but 43 per cent of nature-negative flows associated with the destruction of forests, wetlands and other natural habitats.

The gap, says the report, falls short of 542 billion dollars, which should be contributed annually by 2030 to nature-based solutions to meet Rio Convention targets on limiting climate change to 1.5 degrees Celsius.

 The increased contribution will also ensure that targets of the Global Biodiversity framework to set aside 30 per cent of land and sea by 2030, enhance fod security  nd achieve a state whereby the amount and quality of land resources necessary to support ecosystem function and services are met.

“Nature-based solutions are dramatically underfunded. Annual nature-negative investments are over 30 times larger than financing for nature-based solutions that promote a stable climate and healthy land and nature. To have any chance of meeting the sustainable development goals, these numbers must be flipped; with true custodians of the land such as indigenous people among the chief beneficiaries,” said Inger Andersen, executive director of Unep.

The report underscores that merely doubling or tripling investments in nature-based solutions won't be enough to meet the three Rio targets unless the substantial $7 trillion (Sh1 quadrillion) financial flows to nature-negative practices are significantly reduced and ideally redirected to support of nature.

 “This year’s report is a stark reminder that continuing with business as usual poses a severe threat to our planet, reinforcing the urgent need for a transition to sustainable business practices and to stop the financing of nature destruction. The net is tightening, with increased regulatory pressure in key areas like tackling deforestation; it means that those companies and financial institutions still driving the problem now need to make best use of the excellent data, guidance and frameworks already available to urgently commit to a nature-positive future," said Niki Mardas, executive director of Global Canopy, a data driven non-profit institution that contributed to the report. “The single biggest action we can take for nature, climate and people is green finance,” he added. Green finance is an investment that promotes environmentally-positive activities.

The report also recommends that the financial sector and businesses should not only increase their investments in nature-based solutions but also institute incentives to shift finances away from detrimental activities, promoting positive outcomes for nature.

Last year, experts at the Stockholm +50 preparatory meetings warned that humanity is still doing more harm than good to nature, that humanity’s actions have diverted and stalled progress in what is meant to be a decade of action, that resource extraction drives 90 per cent of biodiversity loss and half of greenhouse emissions, and that the food sector is responsible for 60 per cent of biodiversity loss.

They also emphasised the triple threat of climate change, biodiversity loss and threats posed by pollution and waste.

The United Nations Development Programme (UNDP) detailed that nature’s destruction “defrauds countries and society, jeopardising the resources that currently generate around half of global GDP, or an estimated US$44 trillion (6 quadrillions). The impact of losing wild pollinators, marine fisheries and timber from tropical forests — just a fraction of ecosystem services — could reduce global GDP by an estimated Sh424 trillion annually by 2030.”

It emphasises the urgency to stop abusing nature and for governments to urgently outlaw the destruction and degradation of nature.
“Prosecuting the theft of natural capital as we would any other financial crime would force a global rethink in how nature is valued, grounded in legal and economic accountability that acknowledges healthy ecosystems as a cornerstone of our collective well-being,” says UNDP.

And at the recently concluded COP28 in Dubai, leaders announced commitments on climate, nature and people, pledging a scaling of finance and investments for climate and nature from domestic budgets, multilateral development banks, multilateral climate and biodiversity funds, and private sector actors.

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