Why is it in the news?

• State of Finance for Nature 2023 Report was released by UNEP.

 More about the news

• The report aims to monitor and analyse the flow of public and private finances towards Nature-based Solutions (NbS) addressing critical global issues like biodiversity loss, land degradation, and climate change.
• Approximately US$200 billion is currently allocated to NbS, which accounts for only one-third of the required finance projected for NbS by 2030.
• The report estimates that nature-negative finance flows, referring to financial activities potentially harmful to nature (e.g., fossil fuel subsidies), amount to nearly US$7 trillion annually.
• To meet the targets set by the Rio Convention, the report suggests that finance flows to NbS must nearly triple from the current levels, reaching US$542 billion per year by 2030.

Recommendations

• Emphasizes the need to reduce public and private nature-negative finance flows, aligning financial activities with environmental sustainability goals.
• Advocates for the scaling up of both public funding and private investment into NbS.
• Suggests creating non-traditional revenue streams, such as leveraging biodiversity and carbon credits to attract investments.
• Highlights the importance of ensuring a just transition to a green and inclusive financial system.
• Specifically emphasizes the inclusion of vulnerable groups, women, and Indigenous Peoples in shaping and benefiting from these financial systems.