Oliver Withers, biodiversity lead within the global sustainability team at Credit Suisse, says that the case for nature and biodiversity-based investment is pretty straightforward.
“We talk a lot about the need to invest in carbon-capture technology, but that technology already exists, it’s called trees and mangroves,” he points out.
Nature and biodiversity-focused funds lag behind their climate peers in attracting capital flows. Yet they represent a big opportunity to accelerate global decarbonization.
The Paulson Institute’s Financing Nature report highlights an $800 billion funding gap in nature-based solutions (NBS), which constitute a core element of global decarbonization tools.
NBS investments are overwhelmingly driven by public funds, with only 14% of total flows coming from private finance, according to the UNEP. Meanwhile, the latest Capgemini World Wealth Report highlights an annual growth in the high net-worth population of 7.8% in 2021 as global wealth increased by 8%.
Could that private wealth be the key to closing the biodiversity funding gap?
It seems that the wealthy and ultra-wealthy are engaging with sustainable investment trends, while nature-based solutions resonate well with younger private banking customers.
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