This figure represents seven percent of global gross domestic product, according to the report presented by the United Nations Environment Program (UNEP) at the UN Climate Change Conference (COP28) in the United Arab Emirates. Joined.
The study analyzes and quantifies for the first time the private financing flows that directly impact nature, although the $7 trillion figure is likely an underestimate because it only takes direct impacts into account, the authors note.
The analysis identified five industries that impact financial flows most negatively, including construction, electrical services, real estate, oil and gas, food and tobacco.
These sectors contributed around 16 percent of the economy's total investment flows.
However, 43 percent of nature-damaging agents were related to the destruction of forests, wetlands and other natural habitats.
Additionally, global subsidies to fossil fuel consumers doubled between 2021 and 2022, increasing from $563 billion to $1.16 trillion.
The International Energy Agency (IEA) estimated additional spending to reduce energy costs in 2022 at $500 billion, of which Europe alone accounted for around $350 billion.
Gas and electricity prices doubled as measures were introduced to protect consumers from rising fossil fuel prices.
When it comes to agriculture, the report found that environmentally damaging subsidies amount to more than $345 billion.
A survey of 54 countries estimated that the total support received by the agricultural sector between 2019 and 2021 was $817 billion per year, mostly supporting producers.
According to UNEP, enormous efforts are needed to increase financing and reduce spending on nature-negative finance to achieve the Rio Convention's goals of limiting global warming to below 1.5 degrees Celsius.
The aim is also to prevent the loss of biological diversity and to ensure that 30 percent of land and sea remain protected and that neutrality in land degradation is achieved by 2030.
UNEP Executive Director Inger Andersen said in a press release that annual negative investments in nature are more than 30 times higher than funding to promote a stable climate and healthy soils and nature.
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