Why deforestation and Nature-based Solutions?
Tackling deforestation Investing in Nature-based Solutions
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Deforestation sits at the intersection of climate and nature: net-zero targets will be out of reach unless deforestation is urgently halted and reversed.
Tackling deforestation represents a key opportunity for the financial sector to advance toward net zero, reduce risk, and boost resilience.
11%: of annual global greenhouse gas emissions are attributed to deforestation driven by land-use change and agriculture, according to the IPCC.
1.5°C: to keep the chance of 1.5°C alive, the majority of commodity-driven deforestation needs to be halted by 2025 and land-use “conversion” eliminated by 2030.
60%: of total deforestation is caused by agricultural commodities production, which predominantly occurs in the operations and supply chains of major FLAG (forestry, land use, and agriculture) companies.
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Investments in high-integrity nature-based solutions will help meet the climate, nature, and land-neutrality targets.
One-third of climate mitigation solution: Nature provides enhanced resilience and one-third of the mitigation solution to achieve a 1.5°C pathway.
USD$4.5 trillion: could be generated annually by developing and implementing solutions for a resilient, net-zero, nature-positive agricultural system by 2030.
COP28 set a precedent for the integration of nature in addressing climate change, including food systems, offering a roadmap for the journey ahead. Nature was placed at the heart of the UAE consensus with a strong call for zero deforestation by 2030 and alignment with the Kunming-Montreal Global Biodiversity Framework.
By tackling deforestation risks and boosting investments in nature-based solutions, the finance sector can amplify the investor voice alongside other stakeholders who have laid a strong foundation for global efforts toward a thriving, net-zero, and nature-positive future.
Launched at COP26, the Finance Sector Deforestation Action (FSDA) brings together more than 30 financial institutions that have committed to using best efforts to end commodity-driven deforestation in their investment and lending portfolios.
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