Earth Today | UNEP report champions investment in Nature-based Solutions

WITH NATURE bleeding from chronic underinvestment, a new report from the United Nations Environment Programme (UNEP) has championed a shift from business as usual.

According to the 2026 State of Finance for Nature report, it is time to phase out nature-negative financing, which currently stands at some 30 times the level of investment in nature-positive financing. Instead, it urges scaled-up investments in Nature-based Solutions (NbS), given what is at stake.

Close to 50 per cent of the world’s economy is dependent on nature while to meet global commitments under the Rio Convention requires that NbS investment increase by more than two and a half times to US$571 billion by 2030 even as harmful flows are phased out and re-purposed, the report revealed.

NbS refers to actions taken to care for nature in ways that benefit both people and ecosystems.

“Business-as-usual locks us deeper into further degradation of ecosystems, but governments, corporates, consumers and investors have the power to redirect flows and unlock resilience, equity and growth,” said the 11-author publication, titled Nature in the red: Powering the trillion-dollar nature transition economy.

However, to make the shift from nature-negative activities to sustainable nature-positive systems will take work and commitment from both public and private players.

Key actions, the report said, include not only reforming harmful subsidies and aligning budgets with Rio Convention goals, but also enhancing public investment in NbS; aligning Government regulation and investment with the value of nature and its services; as well as mandating disclosure of nature-related risks and impacts to shift incentives.

It also proposes “ expanding blended finance and de-risking instruments and developing high-integrity nature markets to mobilise private capital at scale”.

Together these proposed actions align with what the report describes as the Nature Transition X-Curve with its vision for “ human and planetary well-being based on investing in nature and economic activity that builds resilience” and the phase-out of activities that negatively impact nature.

“ The transition requires leadership, policy reform and coordinated action across governments, financial institutions and companies in the real economy. Applying the X-Curve as a roadmap for change can help identify transition pathways, sequencing and investment priorities,” the report said.

“Turning the wheel towards nature-positive finance is essential: to meet 2030 targets under the Rio Conventions, to safeguard ecosystems and livelihoods and to build resilient, inclusive and sustainable economies for the future,” it added.

And, it said, the time is now to realise a ‘Big Nature Turnaround’. Not only is the world aware of the scale of the problem facing nature, but opportunities for a successful transition abound.

“Ask most banks and investors what investing in nature means to them and they will most likely be thinking of ‘bees, trees and farmers’. In fact, nature investment opportunities are far broader, including food systems, utilities, construction, infrastructure, extractives, chemicals and other ‘real economy’ sectors,” the report noted.

“Other than in a few dedicated funds and loan products, recognition of these opportunities in the finance sector is weak but is set to grow supported by existing and forthcoming guidance from Nature Positive Initiative, Taskforce on Nature-related Financial Disclosures, Global Canopy and others,” it added.

“Whilst NbS have focused on the forestry, infrastructure and agriculture sector, investable opportunities that use products or services from nature are becoming far more widespread. Governments too should take account of these emerging opportunities and seek ways to foster them,” it said further.

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