Why I Woke Up to a Financial Truth
I read the latest United Nations analysis and felt the familiar churn in my stomach that comes when a pattern I’ve written about before shows up in stark numbers. The UN’s State of Finance for Nature (2026) finds that in 2023 the world poured roughly $7.3 trillion into activities that degrade ecosystems, while only about $220 billion flowed into nature-based solutions — roughly 33 times more spent destroying nature than protecting it[^1]. Those numbers are not abstract; they are a ledger of future storms, food shocks, and lost livelihoods.
The Numbers, Plain and Difficult
- Nature-negative finance (2023): ~US$7.3 trillion
- Nature-positive (nature-based solutions, 2023): ~US$220 billion
- Rough ratio: ~33:1 (destroy vs protect)
- Target (UN estimate): NbS investment needs to grow to ~US$571 billion/year by 2030 to align with global goals
These figures show two things at once: the scale of the harm we are underwriting, and the relative affordability of the fix. Reaching the 2030 NbS goal would be a tiny fraction of global GDP — a policy choice, not a technical impossibility.
Why this imbalance exists (root causes)
- Private capital still chases extractive returns. Sectors like energy, utilities, industrials and basic materials attract most private investment and are often nature-negative when unchecked.
- Government budgets and incentives still favour short-term production: roughly US$2.4 trillion of public funds flow as harmful subsidies into fossil fuels, certain agricultural practices, water misuse, transport and construction.
- Market signals rarely price nature’s services: water purification, pollination, coastal protection and healthy soils remain externalities in many financial decisions.
- Risk myopia: financial institutions and firms often under-appreciate nature-related risks, so capital does not flow to preventative or restorative solutions at scale.
Consequences we already see — and those coming
- Biodiversity collapse that undermines food security (pollinators, fisheries, soil fertility).
- Greater climate vulnerability: degraded wetlands, forests and soils increase flood, drought and heat risks.
- Economic fragility: agricultural yield volatility, supply-chain shocks, higher insurance costs, stranded assets.
- Social harm: displacement, loss of livelihoods for rural communities and rising public spending on disaster response.
This is not distant. It’s the near-term economics of lost resilience.
Clear policy directions (what governments and institutions should do)
- Phase out harmful subsidies quickly and transparently, reallocating savings to NbS and restoration.
- Mandate nature-related financial disclosures so investors and companies price nature risk into decisions.
- Reform public procurement to favour nature-positive goods and services (e.g., regenerative agriculture, low-carbon and nature-friendly infrastructure).
- Create de-risking instruments (public guarantees, blended finance) to mobilize private capital into NbS at scale.
- Embed nature criteria into banking regulation and credit risk assessment.
These are systemic levers: changes here rewire incentives across markets.
What I’ve argued before (continuity)
I’ve written previously about climate finance and market mechanisms that reward environmental stewardship — including ideas like tradable green credits and the case that polluters must truly pay for their impacts[^2]. The UN’s report reinforces that narrative: the solutions are policy-led and market-enabled, but require political will to reorient trillions.
Practical steps you can take (actionable for readers)
- Vote and advocate: support candidates and policies that commit to ending harmful subsidies and investing in nature.
- Shift where you put money: consider banks and funds that disclose nature risk and invest in regenerative practices. Ask your bank publicly how it assesses nature impacts.
- Consume differently: reduce waste, cut food waste, favour plant-forward diets and buy from suppliers with nature-positive sourcing.
- Get local: join or support restoration and urban greening projects — they build local resilience and create social momentum.
- Use your voice: write to local officials asking for nature-based flood protection, urban tree planting and wetland protection.
Even small local actions add up when they change market signals and political priorities.
A short, sharp conclusion
The UN’s ledger is a wake-up call: we are financing the erosion of the very systems that support human prosperity. The fix is not about more technology alone; it is a reallocation of capital and a redesign of incentives. Investing an order of magnitude more in nature-based solutions is affordable, economically sensible and morally urgent. If we follow the money, we can choose resilience over risky short-term gain.
[^1]: For the UN analysis and summary, see the State of Finance for Nature 2026 coverage and summary at the United Nations site: For every $1 spent protecting nature, $30 goes to destroying it.
[^2]: See my earlier reflections on climate finance and market incentives: "Climate Finance ? Polluters must Pay" (my blog) for context and related proposals: http://mylinkedinposting.blogspot.com/2024/11/climate-finance-polluters-must-pay.html
Regards,
Hemen Parekh
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