For every dollar the world invests in protecting or restoring nature, thirty dollars are spent on activities that degrade it. UNEP’s new State of Finance for Nature 2026 report shows how this imbalance is accelerating climate change, biodiversity loss and pollution — and why shifting financial flows is now one of the most powerful levers available to governments, businesses and investors.
“Whether investments flow into nature’s destruction or into its protection will determine if we live in climate-vulnerable concrete jungles or in climate-resilient green cities,” says Inger Andersen, UNEP Executive Director.
The report sets out a clear path: phase out harmful investments, scale up high-integrity nature-based solutions (NbS), and build an economy that works with nature instead of against it.
Why are harmful investments still so dominant?
In 2023, an estimated US$ 7.3 trillion flowed into activities that damage ecosystems and undermine climate and biodiversity goals. Most of this came from private capital in energy, utilities, industrials and basic materials, as well as public subsidies to the fossil fuels, agriculture, water, transport and construction industries.
By contrast, only US$ 220 billion supported NbS. Nearly 90% of that came from public spending; private-sector contributions amounted to just US$ 23 billion.
The imbalance — 30:1 in favour of nature-negative finance — is clear.
How far off are we from where we need to be?
To meet global biodiversity, climate and land restoration targets, annual NbS finance must increase 2.5 times to US$ 571 billion by 2030. This is equivalent to roughly 0.5 per cent of global GDP — a modest shift compared to the scale of harmful flows already in the system.
Redirecting even a fraction of the trillions currently spent on nature-negative activities would close the gap.
How can the world begin this financial shift?
The report introduces the Nature Transition X-Curve, a new framework guiding how governments and businesses can redirect capital flows.
It outlines two simultaneous, mutually reinforcing transitions:
- Phasing out destructive investments and harmful subsidies
- Scaling up high-integrity NbS and nature-positive investments catalysing a “nature transition economy”
This is the blueprint for moving from a nature-negative to a nature-positive economy.
Are nature-positive options realistic for business?
Yes — and they cover every major sector. Opportunities include:
- Regenerative agriculture and sustainable forestry
- Deforestation-free supply chains
- Biodiversity credits and high-integrity carbon markets
- Nature-linked bonds and innovative green finance
- Urban greening and resilient urban development
Momentum is building. Over 700 organizations, representing US$ 20 trillion in assets, have already adopted the Taskforce on Nature-related Financial Disclosures (TNFD) to assess and manage their nature dependencies and impacts.
Is this shift already happening anywhere?
Yes. Governments and businesses around the world are already taking steps toward a nature-positive transition. Examples include:
- Greening cities to counter heat-island effects and improve liveability
- Embedding nature directly into infrastructure design
- Producing building materials that store carbon instead of releasing it
- Supporting debt-for-nature swaps
- Scaling up ecosystem protection and restoration
These projects show that the transition is not just hypothetical — it’s underway.
What is the bottom line?
A trillion-dollar nature transition economy is within reach. But reaching it requires shifting where money flows: away from activities that harm nature and toward solutions that restore it. Redirecting even a small share of today’s destructive investments would be enough to reshape global markets, strengthen resilience and protect the ecosystems that sustain life.
The State of Finance for Nature 2026 lays out how to start that shift — and why the world cannot afford to delay.
