State of Finance for Nature report

Context: According to a new United Nations (UN) report, Financing for nature-based solutions (NbS) needs to be doubled to deal with multiple global crises of climate change, biodiversity loss and land degradation.

About the report:

• The report was released by the UN Environment Programme (UNEP) along with the Economics of Land Degradation initiative of the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany, the United Nations Convention to Combat Desertification (UNCCD) and the European Commission.
• The report comes 10 days after the end of the UN Framework Convention on Climate Change (UNFCCC) Conference of Parties 27 (COP27) and a week before the start of the UN Conference on Biodiversity (COP15 CBD) in Montreal.

Key findings of the report:

• The key focus should be on doubling finance flows to NbS and reducing it for activities that increase greenhouse gas (GHG) emissions.
• According to the report, the current global investments in NbS are around $154 billion (Rs 12,49.44 crore) per year, which needs to be increased to $384 billion by 2025.
• On the other hand, investments in economic activities that release GHGs into the atmosphere are currently three to seven times larger than the investments in NbS.
• “Harmful subsidies are highest in the energy sector, estimated to range from $340 billion/ year to $530 billion/year and in the agriculture sector, estimated around $500 billion/year,” estimated the report.
  • The report recommended the phase-out of these investments.
• Another highlight of the report was the need for private investments in nature-based solutions, which currently stands at only 17 per cent.
  • Private actors can combine Net Zero with nature positive, the report suggested.

Source:  DownToEarth

Previous Year Questions

Q.1) In the context of India’s preparation for Climate-smart Agriculture, consider the following statements:

1. The ‘Climate-Smart village’ approach in India is a part of a project led by climate change, Agriculture and food security (CCAFS), an international research programme.
2. The project of CCAFS is carried out under Consultative Group on International Agricultural Research (CGIAR) headquartered in France.
3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’S research centres.

Which of the statements given above are correct? (2021)

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1,2 and 3