G20 leadership required to catalyze private capital inflow for nature-based solutions
G20 country investments in nature-based solutions (NbS) need to reach USD 285 billion/year by 2050 to address the interrelated climate, biodiversity, and land degradation crises; however, current G20 spending is only USD 120 billion/year. These are the findings of a new report, the ‘State of Finance for Nature in the G20’.
It also reveals that the spending gap in non-G20 countries is larger and more difficult to bridge than in G20 countries, but only 2 per cent of the G20’s USD 120 billion investment (using 2020 as a base year) was directed towards official development assistance (ODA). Similarly, private sector investments remain small, at just 11% or USD 14 billion/year, even though the private sector contributes 60 per cent of the total national GDP in most G20 countries. Thus, the business and investment case for nature needs to be made stronger.
The report is led by the UN Environment Programme (UNEP), the World Economic Forum (WEF) the Economics of Land Degradation (ELD) Initiative hosted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in collaboration with Vivid Economics. It builds on the 2021 report, ‘State of Finance for Nature – Tripling Investments in Nature-based Solutions by 2030’, which calls for closing a USD 4.1 trillion financing gap in nature-based solutions between 2020 and 2050.
