Translated with AI
Investments in activities that destroy nature are 30 times greater than those invested in measures to protect it, according to a new report by the United Nations Environment Programme (UNEP), published Thursday.
The report is based on data for 2023. The authors state that the total financial flows associated with environmentally damaging activities have reached $7.3 trillion. Of this, $4.9 trillion is private capital investment, concentrated primarily in the utilities, manufacturing, energy, and raw materials sectors.
Another $2.4 trillion comes from government subsidies for fossil fuel extraction, construction, unsustainable transportation, and environmentally harmful agricultural and water management practices.
At the same time, investments in environmental solutions in 2023 amounted to only $220 billion. Almost 90 percent of this amount came from public sources.
According to UNEP estimates, investment in environmental protection measures needs to increase at least 2.5-fold, to $571 billion per year. This amount represents only 0.5 percent of global gross domestic product (GDP).
"If you follow the money flows, 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 UNEP Executive Director Inger Andersen.
She said the report offers government leaders and businesses a roadmap for changing current trends and working with nature, not against it.
Redirecting private and public capital flows is the most powerful tool for reorienting markets toward sustainable development, according to the report's authors. They presented a framework designed to help policymakers and companies gradually implement reforms and increase the number of sustainable solutions across all sectors of the economy.
The concept calls for a gradual phase-out of destructive subsidies and investments while simultaneously scaling up environmentally friendly investments. The report offers concrete action options for public and private companies across all stages of the supply chain.
Examples of the approach's application include greening urban areas, integrating natural solutions into road and energy infrastructure, and producing building materials with a negative carbon footprint.
The key principle of nature-friendly investments is their reliance on local environmental, cultural, and social conditions while ensuring inclusiveness and equity, the authors of the document emphasize.
