Current funding pathways will not be sufficient to address the estimated US$ 250 - 300 billion annual conservation funding gap. Urgent action is needed to scale up investments in the ecosystems underpinning human wellbeing and the global economy.
Ecosystems contribute an estimated US$ 72 trillion worth of services each year to the global economy – services like maintaining water flows for people and agriculture, pollinating crops, storing and capturing carbon, and providing the raw materials for the next medical breakthrough.
Yet many ecosystems are under threat. Their capacity to continue providing these services in the face of global pressures such as climate change, habitat loss, pollution and a rising human population is being stretched. Investment is needed to help keep these ecosystems healthy and functioning.
"To meet the needs of 9 billion people by 2050 we must recognise the role our ecosystems play in sustaining us – and we must act to preserve their capacity to do so" – Inger Andersen, IUCN Director General
Historically, funding for conservation has largely been public, philanthropic, and donor-based. An estimated $52 billion is dedicated to conservation projects each year, leaving a funding shortfall of at least $250 billion.
Currently, conservation finance represents a largely undeveloped market, but interest is growing. The constraints preventing investment at the scale necessary include high risk and uncertain rates of return. The potential investor base includes wealthy individuals, pension funds, and mainstream retail investors, while approaches combining public and private finance are reducing risk and increasing yields.
"What has become clear over the last couple of years is that there is increasing interest in investments in nature that generate returns for both the environment and the economy" – Fabian Huwyler, Vice President, Global Sustainability Group, Credit Suisse
Growing opportunities on the horizon
At the IUCN World Conservation Congress, held on 1- 10 September in Hawai'i, the financial industry, international organisations and the academic sector joined forces to initiate the Coalition for Private Investment in Conservation, aimed at creating investment opportunities and tools to help bring conservation projects to the marketplace.
Launched during the High Level Dialogue Private Finance for Public Good, the coalition will focus on forest landscape restoration, sustainable agriculture intensification, sustainable coastal fisheries and resilience, and watershed management as potential investment sectors for the future.
Members of the new Coalition for Private Investment in Conservation
IUCN Members also passed motions related to conservation finance on strengthening business engagement in biodiversity preservation, the application of social and environmental safeguards, and respect for rights in development finance institution investments, and mobilising financing for biodiversity projects in the European Union's outermost regions and overseas countries and territories.
