Tens of billions of pounds-worth of private investment will be needed for the United Kingdom to achieve the nature-related targets it has set as part of its climate change and biodiversity commitments
A report out today by the ‘The Finance Gap for UK Nature commissioned by the Green Finance Institute (GFI) revealed a minimum of £44 billion to £97 billion in investment above current public sector commitments is required for the UK to meet nature-related outcomes in the next ten years with a central estimate of £56 billion.
The largest finance gap regionally lies within England, followed by Scotland, while the largest gap with regards to outcomes are found within climate mitigation through bio-carbon and the protection and/or restoration of biodiversity.
Biocarbon projects to reduce greenhouse gas emissions and increase carbon sequestration were the biggest single area, needing 20 billion pounds over the decade, the report said. Such projects include planting woodland, preserving peat bogs and switching to more regenerative farming practices
Dr. Rhian-Mari Thomas OBE, CEO, Green Finance Institute, said:
“The data is conclusive that public investment – even if funding commitments increase – will not be enough to fund the UK’s nature recovery ambitions. Private investment is therefore urgently required in addition to public sector funding if we hope to transition to a net zero and nature-positive economy.”
“Having identified the scale of investment needed, and where it is needed, we must now focus on unlocking barriers to the mobilisation of private finance into nature-positive projects and businesses right across the UK.
Harnessing the momentum of the Convention on Biological Diversity COP15 and
COP26, there is an opportunity to create high integrity environmental markets and investment opportunities that work for nature, society and the economy to help close this UK finance gap.”
Helen Avery, Head of Nature Programmes, Green Finance Institute, said: “Armed with this data and drawing on the recommendations of the upcoming Financing UK Nature Recovery Coalition report,the Green Finance Institute will be looking to work with the UK finance sector in addition to other key stakeholders to identify the barriers to private capital for priority nature-positive outcomes, and to develop practical solutions to support the growth of investment in nature in the UK.”
