Nature-Based Solutions: Key to Combatting Climate Change Urgency

Nature-based solutions often outperform engineered ones in disaster risk reduction and cost-effectiveness, yet require increased funding and innovative financial practices.

As global leaders gather in Baku for COP29, the urgency to confront climate change has never been more pressing.

With projections suggesting that 2024 could become the hottest year on record, surpassing the critical 1.5°C threshold set by the Paris Agreement, the stakes are incredibly high.

Alarmingly, Canada’s climate is warming at rates that are twice the global average, highlighting the need for immediate action.

Innovative Pathways to Nature-Based Solutions

In this critical moment, governments, including Canada’s, are seeking not only regulatory measures but also innovative technological solutions to tackle the crisis.

One of the most promising avenues lies in nature-based solutions (NbS), strategies that harness the power of natural processes rather than relying solely on man-made infrastructure to mitigate climate impacts. Governments have three principal pathways to bolster the adoption of NbS: phasing out harmful subsidies, incorporating natural assets into financial frameworks, and encouraging biodiversity credits.

These tools offer legislators a diverse toolkit to inspire change.

As the world converges in Azerbaijan, it is essential that these strategies remain at the forefront of discussions. Nature-based solutions encompass a variety of initiatives aimed at using natural systems to alleviate the pressures of climate change.

From restoring wetlands and implementing cover cropping to establishing wildlife corridors and enhancing natural water retention, NbS have proven to be remarkably effective in sequestering carbon and fostering biodiversity.

Besides their environmental benefits, these solutions enhance human health and well-being while providing built environments with critical protections from flooding and erosion. A comprehensive study of 155 peer-reviewed articles revealed that in 65% of cases, NbS surpassed engineered solutions in reducing disaster risk, and they were found to be more cost-effective in 71% of instances.

The United Nations Environment Program reported that global financing for NbS hit USD $200 billion in 2022, yet to meet 2030 targets for climate, biodiversity, and land restoration, the investment needs soar to approximately USD $600 billion, with a mere 18% anticipated from the private sector.

The Financial Challenge and Opportunity

Governments have an opportunity not just to invest directly in NbS but also to incentivize private sector participation in eco-friendly initiatives. However, a significant barrier exists in the form of detrimental financial practices.

Annually, around USD $7 trillion is spent on activities that degrade nature, with private sector contributions accounting for USD $5 trillion of that sum.

Alarmingly, approximately 69% of public sector funds are funneled into fossil fuel subsidies, while 20% supports agricultural subsidies. Reallocating even a fraction of this public spending from carbon-heavy sectors into the needed USD $600 billion for NbS implementation could translate into substantial gains for the environment.

Yet, navigating this political shift poses a challenge.

Natural resources often fail to be factored into national accounting frameworks, which contrasts sharply with how resource extraction feeds into gross domestic product calculations that govern governmental assessments of performance. To overcome these hurdles, it is imperative to revamp traditional accounting practices to reflect the value of natural assets.

Existing frameworks could aid in this transition; for example, the International Public Sector Accounting Standards Board recently released a consultation paper focused on natural resources reporting.

Recognizing the value of the natural world in traditional accounting systems could pave the way for significant investments in NbS without imposing additional burdens on public finances.

Building an Inclusive Biodiversity Credit System

While current carbon markets have succeeded in attracting investments for low-carbon technologies, they frequently neglect the more cost-efficient and effective realm of NbS.

Unlike carbon credits, which primarily incentivize human-engineered decarbonization strategies, biodiversity credits focus on enhancing biodiversity through NbS. These biodiversity credits can be structured to create a system wherein companies that negatively impact biodiversity financially support projects aimed at improving it or fund organizations that establish standards for sustainable production.

The International Advisory Panel on Biodiversity Credits has proposed a framework designed to foster a vibrant market for these credits. Evaluating the value of nature presents a complex challenge, especially given the absence of clear metrics for measuring biodiversity.

It is essential that these evaluations are aligned with the specific needs of local ecosystems and engage input from local communities.

Often, people with vital local knowledge are not included in such dialogues, making broad-based, inclusive discussions crucial for the success of NbS in advancing sustainable development. As representatives from around the globe gather to address climate change at this pivotal moment, leveraging advancements made in carbon markets should be a priority.

Establishing an international biodiversity credit system rooted in inclusivity will be instrumental.

True progress will depend on collaboration among civil society, businesses, and governments to explore and implement nature-based solutions that deliver both efficacy and sustainability.

By adopting strategic measures, governments can move toward more sustainable practices and tackle the climate crisis head-on.

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