The United Nations has once again drawn our attention to the dangers posed by climate change and called for increased investments by countries to fight a looming ecological disaster. In its latest State of Finance report, the world body estimated that the allocation of funds for nature conservation must triple by 2030 and quadruple by 2050 to fight climate change.
The report, released in May 2021, highlights numerous issues like land degradation, plant and animal life destruction, and reckless development causing climate change. The world will need US$8.1 trillion to fight climate change by mid-century, but there may be a shortfall of US$4.1 trillion with the current spending of US$133 billion annually, it said.
Currently, 86 per cent of the climate fund comes from governments, developmental financial institutions, or climate protection groups, and the remaining 14 per cent is infused by the private sector.
In 2018, the private sector’s contribution to climate projects was US$18 billion, mainly mobilized through sustainable agriculture and forestry supply chains, philanthropy, multilateral organizations and private equity investments. The report suggests that several private sector-led initiatives are already in play, and more companies and financial institutions must join the efforts.