Setting the scene

The report positions nature loss as a systemic economic and financial risk. Since 1970, global wildlife populations have declined by 73 per cent, while around half of global GDP is moderately or highly dependent on nature. Despite this reliance, current economic systems continue to deplete natural capital. UNEP identifies a limited window to trigger a “Big Nature Turnaround” by 2030 through embedding nature into economic planning and redirecting finance towards sustainable outcomes.

Tracking nature-negative finance

Finance flows remain heavily skewed towards activities that damage ecosystems. In 2023, global nature-negative finance reached US$7.3 trillion, comprising US$2.4 trillion in public environmentally harmful subsidies and US$4.9 trillion in private capital. These flows are concentrated in sectors such as fossil fuels, agriculture, utilities, industrials and basic materials. The scale of these investments undermines progress on biodiversity, climate mitigation and land degradation neutrality, reinforcing unsustainable production and consumption patterns.

Finance flows to nature-based solution

Investment in nature-based solutions (NbS) remains limited relative to need. In 2023, global NbS finance totalled US$220 billion, with approximately 90 per cent sourced from public finance. Private finance contributions are comparatively small but include biodiversity offsets, certified commodity supply chains, biodiversity-related bonds and voluntary carbon markets. While modest, these flows demonstrate potential for growth if supported by improved standards, data transparency, blended finance and risk-sharing mechanisms.

Investment needs for nature-based solutions

To meet global commitments under the Rio Conventions, annual NbS investment must increase by more than two and a half times to US$571 billion by 2030, rising to US$771 billion by 2050. Modelling shows that protection-based NbS are particularly cost-effective, accounting for around 80 per cent of additional land area required by 2030 while absorbing only 20 per cent of additional finance. However, increased climate ambition places pressure on land systems, reducing land availability for agriculture and increasing overall investment needs. Data gaps and inconsistent definitions continue to constrain accurate estimation and tracking of NbS investment.

Transitioning finance flows for nature-positive outcomes

The report introduces the Nature Transition X-Curve as a framework to guide the shift from nature-negative to nature-positive finance. The approach emphasises simultaneously phasing out harmful finance while scaling up investment in NbS and broader transition finance. Key actions include reforming environmentally harmful subsidies, aligning fiscal frameworks with nature goals, mandating disclosure of nature-related risks and impacts, and expanding blended finance instruments to mobilise private capital. Coordinated action across governments, financial institutions and the real economy is identified as essential to repurpose existing capital flows and support a resilient, nature-positive economic transition.