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Green Investments Yield Big Buck Returns: Report

By Outlook Planet Desk June 06, 2024

A recent report spotlights the compelling business case of bankrolling green projects, stating that such investments could yield 20X returns.

Green Investments Yield Big Buck Returns: Report
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A recent report, Closing the Gap: Investing in Natural Capital to Meet the Sustainable Development Goals, puts a number to the amount 40 strategically chosen would have to invest to meet key UN Sustainable Development Goals (SDGs) related to the conservation and restoration of nature, efficient natural resource utilisation, and reducing water and air pollution. 
 
According to its estimates, the nations would have to invest $ 7.4 trillion between now and 2030 to meet nine key nature-related SDG targets. Such an investment could yield a bonanza upwards of $ 145 trillion...that is up to $ 20 for every dollar spent. In the process, between now and 2030, it would:
  1. Avert nearly 4.5 million premature deaths every year 
  2. Prevent deforestation of 27 million hectares 
  3. Lower natural resource extraction of almost 18 billion tonnes
  4. Restore more than 250 million hectares of agricultural land
  5. Increase terrestrial protected areas by 396,000 hectares and marine protected areas by 218,000 hectares
The 40 countries included in the report represent 80 per cent of world GDP, 78 per cent of the global human population, 78 per cent of arable land and 81 per cent of greenhouse gas emissions. The gap in natural capital stocks and required investment varies by country. The report highlights that focusing on protecting ecosystems and addressing air pollution would yield high benefits globally.
 
Collective action in protecting and restoring ecosystems, a top-three investment priority globally, would decrease the "natural capital gap" by 34%. The highest returns on investment come from protecting natural ecosystems (32 out of 40 countries) and restoring degraded agricultural land (7 out of 40 countries).
 
In terms of pollution and consumption, the study found that the USA, India, and China stand to gain the most if they combated air pollution and greenhouse gas emissions other than working on decreasing and improving their use of natural materials.
 
Investing in nature would significantly benefit low and lower-middle-income countries, particularly in Sub-Saharan Africa. The most significant gains would accrue from investments in water and sanitation, ecosystems, and agricultural land remediation.
Urgent actions for governments and businesses are outlined in alignment with relevant frameworks and targets, such as the SDG Cooperation Framework and the Global Biodiversity Framework (Biodiversity Plan).
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