The G20 can close the climate finance gap with investments in nature-based solutions.
That’s the view of the UN Environment Programme (UNEP) and World Economic Forum (WEF) in a new study.
In 2020, the G20 nations made a combined $120 billion (£89.5bn) investment in nature-based solutions but the report claims this must increase by 140% if climate targets are to be met by 2050.
This means an additional $165 billion (£123bn) needs to be invested to close the climate finance gap, which the study says sits at $4.1 trillion (£3tn).
Additionally, it reveals private sector investments sit at 11% even though the private sector contributes to 60% of the national GDP of the G20 countries and this must also be increased.
A heavy shift in investments must take place following COVID-19, as $14.6 trillion (£10.9tn) was spent by the 50 leading global economies in 2020 but only 2% of this was considered ‘green’.
Ivo Mulder, UNEP’s Climate Finance Unit, said: “Systemic changes are needed at all levels, including consumers paying the true price of food, taking into account its environmental footprint.
“Companies and financial institutions should fully disclose climate and nature-related financial risks and governments need to repurpose agricultural fiscal policies and trade-related tariffs.”
Director of Nature-Based Solutions at WEF Justin Adams added: “The climate and nature crisis are two sides of the same coin and we can’t turn things around unless we transform our economic models and market systems to take nature’s full value into account.”