Global Finance Still Failing Nature: $30 Spent on Destruction for Every $1 on Protection

Accra, Ghana — The world continues to invest far more in destroying nature than in protecting it, a new United Nations Environment Programme (UNEP) report warns, exposing a stark imbalance that threatens climate goals, biodiversity, and the stability of global economies.

According to UNEP’s State of Finance for Nature 2026, published this week, global spending on environmentally harmful activities reached US$7.3 trillion in 2023, dwarfing the US$220 billion invested in nature-based solutions (NbS)—projects that harness ecosystems to address climate change, biodiversity loss, and environmental risks.

For every one dollar invested in nature protection, the world spent 30 dollars in ways that degrade it, the report shows. The private sector accounted for US$4.9 trillion of destructive spending, largely in energy, industrial production, utilities, and basic materials, while governments contributed US$2.4 trillion through environmentally harmful subsidies spanning fossil fuels, agriculture, transport, and construction.

By contrast, nearly 90 percent of NbS funding came from public sources, with private sector investment lagging at just US$23.4 billion, or 10 percent of total NbS funding. UNEP emphasizes that this slow uptake among corporations and financial institutions is particularly concerning given their heavy reliance on natural systems.

Financing Nature: The Scale of the Gap

UNEP estimates that investment in nature-based solutions must increase 2.5 times, reaching US$571 billion annually by 2030—roughly 0.5 percent of global GDP—to meet climate, biodiversity, and sustainability targets.

“If you follow the money, you see the scale of the challenge ahead,” said UNEP Executive Director Inger Andersen. “We can either invest in nature’s destruction or power its recovery—there is no middle ground.” Andersen added that while funding for NbS is growing slowly, harmful investments and subsidies are accelerating at a much faster rate.

The report introduces the Nature Transition X-Curve, a framework designed to guide governments, investors, and businesses in shifting capital from environmentally harmful sectors toward nature-positive projects. The X-Curve outlines strategies to phase out destructive subsidies and investments while scaling up NbS across sectors including urban planning, energy, infrastructure, and carbon-removing building materials.

Germany’s Minister for Economic Cooperation and Development, H.E. Reem Alabali-Radovan, called for urgent action from the private sector. “The world’s financial flows need an urgent shift from degrading the environment to investments in nature-based solutions,” she said, stressing that natural capital must be embedded in economic and policy decisions globally.

Nature-Based Solutions in Action

UNEP highlighted practical examples already underway, including:

• Greening urban spaces to mitigate extreme heat

• Integrating ecosystems into road and energy projects to enhance resilience

• Developing carbon-negative building materials that sequester CO₂

The report emphasizes that nature-positive investments must respect local communities, cultures, and ecosystems while ensuring fairness and inclusion. Beyond environmental benefits, UNEP stresses that redirecting finance toward nature is a strategic economic opportunity, fostering sustainable growth and resilient futures for businesses and societies alike.

As the global financial system enters 2026, the UNEP report serves as a stark reminder: investing in destruction is no longer an option if climate and economic stability are to be safeguarded.

Source: Accra Business News