£5 to 7 billion of additional investment needed in Wales over next decade to meet nature-related targets
As the Convention on Biological Diversity (COP15) continues, new report reveals that a minimum of £5 – 7 billion of investment is needed in Wales to deliver the UK’s nature-related ambitions over the next 10 years.
London, October 12, 2021 – Published today, a new report reveals the investment gap to secure key nature-related outcomes in Wales – such as biodiversity protection and restoration – to be between £5 billion and £7 billion over the next 10 years. Commissioned by the Green Finance Institute, the analysis highlights the need for private investment in addition to public sector funding to meet net zero and nature-positive ambitions.
The Finance Gap for UK Nature report outlines the gap between required spending and committed spending associated with the delivery of nature-related outcomes across England, Wales, Scotland, Northern Ireland and the UK’s Overseas Territories over the next 10, 20 and 30 years. The UK’s total finance gap reveals £44 – £97 billion of investment needed to deliver the UK’s nature-related ambitions over the next 10 years, with the largest gap regionally within England (£21 – £53 billion over 10 years).
The largest gaps specific to outcomes in Wales lie within climate mitigation through biocarbon (£2 billion over 10 years), which accounts for peatland restoration and carbon sequestration improvement through agricultural practices and tree planting.
The Green Finance Institute commissioned environmental economics consultancy, eftec, to identify the extent to which private investment is required to meet the UK’s net zero and nature-positive ambitions by investing in nature-enhancing projects. The report now provides the information to understand the scale of investment needed and where investors need to focus.
Where is the Finance Gap? (2022 to 2032)
1. The sum of the gaps for each country does not add up to the total for the UK as spending data on some outcomes are only available for the UK or Great Britain.
2. Only includes spending to increase the proportion of protected and well-managed seas. The ranges of estimates refer to best and worst case scenarios based on available evidence.
Dr. Rhian-Mari Thomas OBE, CEO, Green Finance Institute, said:
“The data is conclusive that public investment – even if funding commitments increase – will not be enough to fund the UK’s nature recovery ambitions. Private investment is therefore urgently required in addition to public sector funding if we hope to transition to a net zero and nature-positive economy.”
“Having identified the scale of investment needed, and where it is needed, we must now focus on unlocking barriers to the mobilisation of private finance into nature-positive projects and businesses right across the UK. Harnessing the momentum of the Convention on Biological Diversity COP15 and COP26, there is an opportunity to create high integrity environmental markets and investment opportunities that work for nature, society and the economy to help close this UK finance gap.”
Helen Avery, Head of Nature Programmes, Green Finance Institute, said:
“Armed with this data and drawing on the recommendations of the upcoming Financing UK Nature Recovery Coalition report, the Green Finance Institute will be looking to work with the UK finance sector in addition to other key stakeholders to identify the barriers to private capital for priority nature-positive outcomes, and to develop practical solutions to support the growth of investment in nature in the UK.”
Key findings
Seven nature-related outcomes were identified within the scope of the project, and, where data allowed, outcome-specific funding gaps have been identified for the UK and the devolved administrations.
Finance gap by location and outcome for next decade (central estimates)
NB: Central estimates given within larger range of estimates. Central estimates take an optimistic spending assumption that the current committed spending continues beyond the committed period. If figure less than 1 million rounded to nearest million. The sum of the gaps for each location does not add up to the total per location due to rounding.
- The sum of the gaps for each location does not add up to the total for the UK as spending data for some outcomes only available for the UK / Great Britain or includes spending in Overseas Territories.
- UK finance gap for this outcome measured as sum of gaps across DAs.
NB: If figure less than 1 million rounded to nearest million. The sum of the gaps for each location does not add up to the total per location due to rounding.
What are the outcomes?
Within these outcomes the following gaps were among those identified for specific outputs UK-wide over the next ten years:
An interactive summary of the report can be found on the website including the full report from Tuesday 12th October, definitions of outcomes and outputs identified, and methodology. A database and tool of results is available upon request by emailing helen.avery@gfi.green.
