This document provides the G20 Working Group on Sustainable Finance (SFWG) with recommendations on regulatory frameworks that can scale up financing for nature-based solutions (NBS). The document builds on the lessons learned and conclusions of UNEP's annual report on the state of finance for nature, which tracks financial flows against the financing needed to maximize the potential of NBS to help address climate, biodiversity and environmental degradation.
Resolution 5/5 of the United Nations Environment Assembly (UNEA) defines NBS as: "(...) actions to protect, conserve, restore, sustainably use and manage natural or modified resources
terrestrial, freshwater, coastal and marine ecosystems, which address social, economic and environmental challenges effectively and adaptably, while providing human well-being, ecosystem services and resilience, and biodiversity benefits."
The resolution further recognizes that NBS shall "respect social and environmental safeguards, in line with the three 'Rio conventions' (...), including safeguards for local communities and indigenous peoples" (UNEA 2022: 2).
Nature-based solutions have the potential to provide multiple benefits to address social, economic, and environmental challenges such as food security, water security, and
biodiversity and nature loss; Recent global political agreements have upheld NBS, including the Biodiversity Plan – officially called the Kunming-Montreal Global Biodiversity Framework (GBF) – as well as the United Nations Sustainable Development Goals (SDGs).
The G20 countries play an important role in promoting the transition to a sustainable economy, as they represent the world's major economies and therefore have the capacity to collectively address major economic and environmental challenges. The G20 must take a
leading role in advancing global environmental agendas such as the GFM and the Paris Agreement with the backing of major economies. By fostering policy measures and an enabling environment to support NBS around the world, G20 countries can make significant progress towards the ambitious targets agreed under the GBF.
Private financing is critical to scaling up NBS, as it provides the capital needed to launch and scale up projects that restore or conserve ecosystems. Private finance can also boost innovation and mobilise additional resources by leveraging public funds.
The implementation and support of benchmarks, norms and markers for public and private investment in NBS is crucial to ensure transparency, accountability and effective allocation of resources. |
