$8 Trillion (7% of Global GDP) Must Shift to Save Biodiversity

In the twilight of the 21st century’s first quarter, the world is waking up to what might be the greatest risk to our civilization: the loss of biodiversity. This is no ordinary environmental concern; it’s an existential threat. Biodiversity, one of our nine planetary boundaries, has been catastrophically breached, thrusting humanity out of its safe operational space.

The gravity of this situation has not gone unnoticed. A historic agreement, endorsed by 196 countries, has set a monumental goal: halting the degradation of nature by 2030.

This endeavor will require an estimated annual investment of $850 billion. But the ambition doesn’t stop there. The plan aims to restore nature to a “safe place” by 2050, which means doubling the amount of nature on land and quadrupling marine life within a quarter-century.

Why is this necessary? Because in the last 50 years, the planet has lost 70% of its Wildlife population, and 50% of its marine life in the last 40 years. These are not mere statistics; they are indicators of a collapsing ecological fabric that sustains life on Earth.

To achieve these ambitious goals, we need to address an annual $7 trillion in subsidies currently fueling industries that degrade nature.

Yes, you read that correctly: $7 trillion per year.

In total, around $8 trillion annually must be reallocated, which equates to about 7.29% of the world’s GDP, given the current global GDP of approximately $109.73 trillion.

To put this into perspective, consider the economies of Germany and India. Germany’s GDP is projected to be around $5 trillion, and India’s GDP is approximately $3 trillion. Together, these two economies sum up to $8 trillion — the total economic value we need to either invest in or divest from nature-degrading activities every year.

This shift is not optional. Approximately 60% of the world’s GDP is moderately or highly dependent on nature and its ecosystem services, including clean water, pollination, disease control, and climate regulation. According to the World Bank, half of world GDP is generated by sectors — from agriculture and lumber to fisheries — that are moderately or highly dependent on ecosystems. Additionally, two-thirds of food crops rely at least partly on animal pollination. These ecosystem services are the unseen pillars of our economies and our well-being. For instance, the Amazon rainforest alone provides $317 billion in ecosystem services to Brazil and beyond, highlighting the intrinsic value of these natural systems.

Investing in biodiversity is not just about preservation; it’s about resilience. Healthy ecosystems provide services that are vital to human survival: clean air, water, fertile soil, and climate regulation. By restoring and protecting these natural systems, we are securing our future.

According to the latest report by UBS titled “Bloom or Bust,” there is an increasing global market appetite for precise nature-related data.

This shift involves corporations striving to align with new disclosure frameworks and capital providers seeking actionable biodiversity-related metrics for investment decisions. Starting this year, countries will report on their progress towards the Global Biodiversity Framework goals of the Paris Agreement for Nature, signaling a transformative phase for global environmental accountability and market adaptation.

Business leaders are increasingly aware of the alarming trends related to biodiversity and climate change.

Over 100 financial institutions from 19 countries, managing approximately €15 trillion in assets, have committed to the Finance for Biodiversity Pledge. By 2025, these institutions aim to protect and restore biodiversity through their financial activities and investments. This commitment involves engaging with companies, assessing impacts, setting targets, and publicly reporting on these efforts.

As mentioned, a significant portion of the world’s GDP is at risk due to its dependency on nature and ecosystem services. Recognizing this, leading companies are rethinking their strategies to minimize their environmental impact. The Forum’s report, The Future of Nature and Business, identified $10 trillion worth of business opportunities that could create 395 million jobs by 2030, driving a transition to a people- and nature-positive economy. Businesses are responding to growing consumer demand for environmentally sustainable products and practices, demonstrating a shift towards a greener future.

The challenge is enormous, but so is the opportunity. The transition to a nature-positive economy could drive innovation, create jobs, and spur sustainable development. It requires global cooperation, political will, and a fundamental shift in how we value nature.

Investing in biodiversity is not just about preservation; it’s about resilience. Healthy ecosystems provide services that are vital to human survival: clean air, water, fertile soil, and climate regulation. By restoring and protecting these natural systems, we are securing our future.

This moment signals an unprecedented shift — the greatest migration of capital in history.

Consider the staggering figure: $8 trillion needed annually to halt biodiversity loss, multiplied by the remaining five and a half years. The sum is $44 trillion.

This immense reallocation of capital presents not only a chance to halt and reverse the degradation of our natural world but also an incredible business opportunity. It’s our chance to implement regenerative technologies and a regenerative design framework that will benefit us for centuries to come. By doing so, we can secure a future where economic growth and environmental sustainability go hand in hand, ensuring that future generations inherit a thriving planet.

In conclusion, the world is on the brink of a necessary revolution—one that redefines our relationship with nature and reshapes the very fabric of finance. Here is where Nature Finance emerges.

Nature Finance integrates financial practices with ecological sustainability, assigning economic value to ecosystem services, fostering investment in biodiversity, and promoting regenerative technologies to ensure environmental health and economic growth go hand in hand.

Nature Finance is the financial technology for this significant financial migration, ensuring a resilient and sustainable future.

This is not just an environmental imperative; it’s an economic and moral one. The time to act is now, and the stakes could not be higher.

To delve deeper into the transformative potential of Nature Finance and explore how it can shape a regenerative future, please visit the Nature Finance white paper.

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