Extreme weather events are becoming more common due to climate change. Kuala Lumpur, Malaysia. UN report: 30 more money is spent on destroying nature than on protecting it Climate and environment
Investment in activities that destroy nature is 30 times higher than investment in measures to protect it. This is according to a new report from the United Nations Environment Program (UNEP), which was published on Thursday.
The report is based on data for 2023. Its authors specify that the total volume of financial flows associated with activities harmful to nature reaches $7.3 trillion. Of this, $4.9 trillion is spent in the form of private capital investment, mainly concentrated in sectors such as utilities, industry, energy and raw materials production.
Another $2.4 trillion is government subsidies for fossil fuel extraction, construction, unsustainable modes of transportation, and environmentally damaging agricultural and water management practices.
And only $220 billion in 2023 was investment in solutions that are designed to protect nature. Almost 90 percent of them came from government sources.
UNEP estimates that investment in such solutions needs to be increased by at least 2.5 times, to $571 billion per year. This amount represents just 0.5 percent of global GDP.
“If you follow the flow of money, the scale of the task before us becomes clear. We can either invest in the destruction of nature or contribute to its restoration – there is no compromise,” said Inger Andersen, Executive Director of UNEP.
The use of non-ecological transport leads to severe environmental pollution. Bangkok, Thailand.
“This report offers leaders a roadmap for changing current trends and working with nature rather than against it,” she added.
Redirecting the flow of private and public capital is the most powerful tool for reorienting markets toward sustainable development, the report notes. Its authors presented a framework designed to help policymakers and businesses phase in reforms and increase green solutions across all sectors of the economy.
The framework charts a path to phasing out destructive subsidies and investments while scaling up nature-friendly investments. It offers concrete options for public and private companies across supply chains.
The report provides examples of how this approach is already being used by governments and businesses around the world: greening urban areas; integration of nature-based solutions into road and energy infrastructure; producing building materials with a negative carbon footprint.
The most important principle of nature-friendly investments is that they rely on local environmental, cultural and social conditions while ensuring inclusivity and equity, the report authors emphasize.