Harmful investments outpacing nature protection, UNEP warns

Workers remove asbestos roofing materials in Naivasha in a project sponsored by Nakuru County government at a cost of Sh10 million. [File, Standard]

For every US$1 (Sh129) invested globally in protecting nature, US$30 (Sh3,870) is spent on destroying it, according to a new UN Environment Programme (UNEP) report released on January 22, 2026.

The report, The State of Finance for Nature 2026, calls for a major shift in global financing of Nature-based Solutions (NbS) and a phase-out of harmful investments to deliver high returns, reduce risk exposure, and enhance resilience. NbS involve protecting, managing and restoring nature to address societal challenges while benefiting biodiversity, climate and people.

Using 2023 data, UNEP finds that total nature-negative finance flows reached US$7.3 trillion (Sh942 trillion), with US$4.9 trillion (Sh632 trillion) from private sources concentrated in utilities, industrials, energy and basic materials, alongside US$2.4 trillion (Sh310 trillion) in public environmentally harmful subsidies to fossil fuels, agriculture, water, transport and construction.

By contrast, only US$220 billion (Sh28 trillion) was invested in NbS, with close to 90 per cent coming from public sources. Private investment amounted to just US$23.4 billion (Sh3 trillion) — only 10 per cent of total NbS funding. Despite growing awareness of dependencies, risks and opportunities related to nature, business and finance have yet to invest at scale.

To meet global commitments under the Rio Conventions, NbS investment must more than double to US$571 billion (Sh73.6 trillion) by 2030, while harmful flows must be phased out and repurposed, representing just 0.5 per cent of global GDP in 2024.“If you follow the money, you see the size of the challenge ahead. We can either invest in nature’s destruction or power its recovery — there is no middle ground,” said UNEP Executive Director Inger Andersen.

She added: “While financing for nature-based solutions crawls forward, harmful investments and subsidies are surging ahead. This report offers leaders a clear roadmap to reverse this trend and work with nature, rather than against it.”

There is some cause for optimism. Financial institutions are increasingly seeking to understand their dependencies, impacts, risks and opportunities (DIRO) related to nature. Over 730 organisations have adopted the Taskforce on Nature-related Financial Disclosure (TNFD), representing assets under management of US$22.4 trillion (Sh2.9 quadrillion).

The report introduces a new Nature Transition X-Curve, a framework to help policymakers and businesses sequence reforms and scale up high-integrity NbS across all sectors. The X-Curve charts a path for phasing out harmful subsidies and destructive investment, while simultaneously scaling up nature-positive investments. It offers actionable options for public and private sector stakeholders along the supply chain.

“The world’s financial flows need an urgent shift — from degrading the environment to investing in nature-based solutions,” said Reem Alabali-Radovan, Germany’s Minister for Economic Cooperation and Development. “The private sector plays a key role. German development policy supports partner countries in valuing natural capital, guiding sustainable, future-proof economies.”

Examples of NbS application cited in the report include greening urban areas to reduce heat-island effects, embedding nature into road and energy infrastructure, and producing emissions-negative building materials. Nature-positive investments must also be grounded in local ecological, cultural and social contexts to ensure equity and inclusivity.

Since 1970, 73 per cent of wildlife populations have vanished, according to WWF (2024). “With at least half of our economy moderately or highly dependent on nature’s services, we continue to erode our collective natural bank account,” the report warns.