• The UNDP urges countries to cut finances that damage nature.
• Introduces a new guide that helps them how to do it.

Countries should find and stop financial subsidies that harm biodiversity, notes a new report published by the United Nations Development Programme (UNDP).

The United Nations' main agency for international development has published a new guide to help its member countries manage their finances in a way that does not negatively impact nature.

The BIOFIN Workbook 2024 helps 130 countries develop plans for financing biodiversity.

According to the report, a massive annual funding gap of $700 billion is needed for a healthy planet to achieve this goal and protect biodiversity. Otherwise, it will significantly impact climate stability, food security, and overall human well-being.

Over $1 trillion is generated annually through subsidies that could harm biodiversity, and the report focuses on how to address these subsidies and protect our natural resources.

The UNDP's guide suggests the following three main actions:

• Identifying harmful subsidies;
• Changing them to lessen their impact on the environment; and
• Creating National Action Plans in line with Sustainable Development Goals (SDGs).

When countries review these subsidies, they can save money and use it to protect biodiversity.

"Biodiversity loss, climate instability, and land degradation are intertwined crises, and the solutions involve shifting public and private financial flows away from investments that damage nature towards nature-positive economic policies," says Marcos Neto, Assistant Secretary General, and Director of the Bureau for Policy and Programme Support at UNDP.

"A nature-positive economy is essential to securing a sustainable future, where economic growth and environmental protection go hand in hand. By investing in nature and transforming our economic systems, we can create jobs, enhance livelihoods, and build resilience while safeguarding the biodiversity that supports all life," continued Mr Neto.

The new and updated guide encourages companies to be more transparent about their financing, monitor their impact on nature, and channelise funds to protect biodiversity.

The BIOFIN initiative has already helped collect over $1 billion for nature-related projects in 41 countries since 2018 and is now helping 23 countries avoid subsidies that are harmful to nature.

World Wildlife Fund (WWF) data show that wildlife populations have seen a drastic decline, with an average decrease of 73% over the last 50 years, and freshwater species have declined by 85%.

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Source: UNDP