Investing https://climatejournal.news/ en New action plan urges finance sector to scale nature-based investments https://climatejournal.news/news/new-action-plan-urges-finance-sector-to-scale-nature-based-investments <div class="field field--name-title field--type-string field--label-hidden field--item"><span>New action plan urges finance sector to scale nature-based investments</span> </div> <span class="a2a_kit a2a_kit_size_32 addtoany_list" data-a2a-url="https://climatejournal.news/news/new-action-plan-urges-finance-sector-to-scale-nature-based-investments" data-a2a-title="New action plan urges finance sector to scale nature-based investments"><a class="a2a_button_linkedin"><img src="/libraries/bsp_social_media_icons_share/service/linkedin.svg" border="0" alt="LinkedIn" height="18" class="social-media-links-normal"><img src="/libraries/bsp_social_media_icons_share/service/linkedin_hover.svg" border="0" alt="LinkedIn" height="18" class="social-media-links-hover"></a><a class="a2a_button_facebook"><img src="/libraries/bsp_social_media_icons_share/service/facebook.svg" border="0" alt="Facebook" height="18" class="social-media-links-normal"><img src="/libraries/bsp_social_media_icons_share/service/facebook_hover.svg" border="0" alt="Facebook" height="18" class="social-media-links-hover"></a><a class="a2a_button_twitter"><img src="/libraries/bsp_social_media_icons_share/service/twitter.svg" border="0" alt="Twitter" height="18" class="social-media-links-normal"><img src="/libraries/bsp_social_media_icons_share/service/twitter_hover.svg" border="0" alt="Twitter" height="18" class="social-media-links-hover"></a><a class="a2a_button_email"><img src="/libraries/bsp_social_media_icons_share/service/email.svg" border="0" alt="Email" height="18" class="social-media-links-normal"><img src="/libraries/bsp_social_media_icons_share/service/email_hover.svg" border="0" alt="Email" height="18" class="social-media-links-hover"></a><a class="a2a_dd" href="https://www.addtoany.com/share"><img src="/libraries/bsp_social_media_icons_share/service/share_hover.svg" border="0" alt="Share" height="18" class="social-media-links-hover"><img src="/libraries/bsp_social_media_icons_share/service/share.svg" border="0" alt="Share" height="18" class="social-media-links-normal"> Share </a></span> <div class="field field--name-field-tags field--type-entity-reference field--label-inline"> <div class="field--label">Tags</div> <div class="field--items"> <div class="field--item"><a href="/tag/business" hreflang="en">Business</a></div> <div class="field--item"><a href="/tag/sustainable-business" hreflang="en">Sustainable Business</a></div> <div class="field--item"><a href="/tag/natural-capital" hreflang="en">Natural Capital</a></div> <div class="field--item"><a href="/tag/nature-based-solutions" hreflang="en">Nature-based Solutions</a></div> <div class="field--item"><a href="/tag/impact-investing" hreflang="en">Impact investing</a></div> <div class="field--item"><a href="/tag/investing" hreflang="en">Investing</a></div> </div> </div> <div class="field field--name-field-topic field--type-entity-reference field--label-inline"> <div class="field--label">Topic</div> <div class="field--items"> <div class="field--item"><a href="/topic/investing" hreflang="en">Investing</a></div> <div class="field--item"><a href="/topic/natural-capital" hreflang="en">Natural Capital</a></div> <div class="field--item"><a href="/topic/business" hreflang="en">Business</a></div> <div class="field--item"><a href="/topic/sustainable-business" hreflang="en">Sustainable business</a></div> </div> </div> <img width="32" height="32" alt="Business" title="Business" class="img-responsive" src="/files/bsp-images/icons/55.svg" loading="lazy" typeof="foaf:Image" /> <img width="32" height="32" alt="Sustainability" title="Sustainability" class="img-responsive" src="/files/bsp-images/icons/52.svg" loading="lazy" typeof="foaf:Image" /> <img alt="New action plan urges finance sector to scale nature-based investments" title="New action plan urges finance sector to scale nature-based investments" class="img-responsive" src="/files/styles/news_full_main_image/public/bsp-images/news/906.jpg?itok=N4ksLV0A" width="687" height="687" loading="lazy" typeof="foaf:Image" /> <div class="field field--name-field-lead field--type-string field--label-hidden field--item">‘Triple Crisis Action plan’ was launched to call upon investors to embrace natural capital solutions at scale to address climate challenges.</div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2763 paragraph--width--full" style=""> <div class="paragraph__column"> </div> </div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2764 paragraph--width--full" style=""> <div class="paragraph__column"> <p>A natural capital investment firm, <a href="https://cultivo.land/" target="_blank">Cultivo </a>launched a ‘Triple Crisis Action plan’ to call upon financial institutions, corporate investors and private capital to address the triple planetary crisis of global warming, biodiversity loss, and water stress.</p> <p>With this 5-step action plan, Cultivo wants to help unlock investment opportunities in nature at scale to address these emerging global threats.</p> <p>The company promotes the approach that natural capital is an emerging asset class that values the natural world.</p> </div> </div> <div class="paragraph paragraph--type--bp-columns-two-uneven paragraph--view-mode--default paragraph--id--2767 paragraph--width--full paragraph--style--66-33"> <div class="paragraph__column"> <div class="paragraph--type--bp-columns-two-uneven__2col-column1"> <div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2766 paragraph--width--full" style=""> <div class="paragraph__column"> <p>In their opinion, this economic strategy makes it clear why a tree is worth more alive than dead.</p> <blockquote> <p>“The triple crises of climate change, biodiversity loss and water stress are interconnected, and we must address them together and with urgency.</p> </blockquote> <p>High-quality nature-based solutions can tackle these triple crises, and we need to unlock investment in nature at scale and at speed.</p> <p>It is critical we take a holistic approach when it comes to investing in nature,” says Dr Manuel Piñuela, Co-Founder and CEO of Cultivo, on why they created the action plan.</p> </div> </div> </div> </div><div class="paragraph--type--bp-columns-two-uneven__2col-column2"> <div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-image paragraph--view-mode--default paragraph--id--2765 paragraph--width--full"> <div class="paragraph__column"> <div class="field field--name-bp-image-field field--type-image field--label-hidden field--item"> <img alt="" title="" src="/files/bsp-images/paragraph/907.jpg" width="357" height="404" loading="lazy" typeof="foaf:Image" class="img-responsive" /> </div> <div class="field field--name-field-image-title field--type-string field--label-hidden field--item">Dr Manuel Piñuela, Co-Founder and CEO of Cultivo, Image: Cultivo</div> </div> </div> </div> </div> </div> </div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2768 paragraph--width--full" style=""> <div class="paragraph__column"> <p>In the light of the latest alarming <a href="https://www.ipcc.ch/report/ar6/wg1/" target="_blank">IPCC report</a> (Sixth Assessment Report), Dr Pinuela and his team felt the need to activate the finance sector and mobilise more private capital in investing in nature-based solutions.</p> <p>The <a href="https://www.ipcc.ch/" target="_blank">Intergovernmental Panel on Climate Change</a> (IPCC) is the UN body for assessing the science related to climate change.</p> <p>It provides political leaders with periodic scientific assessments concerning climate change, its implications and risks, as well as to put forward adaptation and mitigation strategies since 1988.</p> <p>The recent IPCC report provides new estimates of the chances of crossing the global warming level of 1.5°C in the following decades and finds that unless there are immediate, rapid and large-scale reductions in greenhouse gas emissions, limiting warming to close to 1.5°C or even 2°C will be beyond reach.</p> </div> </div> <div class="paragraph paragraph--type--bp-columns-two-uneven paragraph--view-mode--default paragraph--id--2771 paragraph--width--full paragraph--style--33-66"> <div class="paragraph__column"> <div class="paragraph--type--bp-columns-two-uneven__2col-column1"> <div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-image paragraph--view-mode--default paragraph--id--2769 paragraph--width--full"> <div class="paragraph__column"> <div class="field field--name-bp-image-field field--type-image field--label-hidden field--item"> <img alt="" title="" src="/files/bsp-images/paragraph/908.png" width="612" height="792" loading="lazy" typeof="foaf:Image" class="img-responsive" /> </div> <div class="field field--name-field-image-title field--type-string field--label-hidden field--item">IPCC-2021 report, The Physical Science Basis Summary for Policymakers, Image: IPCC</div> </div> </div> </div> </div><div class="paragraph--type--bp-columns-two-uneven__2col-column2"> <div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2770 paragraph--width--full" style=""> <div class="paragraph__column"> <p>Dr Piñuela adds: “We hope that the hard-hitting nature of this year’s IPCC report helps galvanise us all into action and gives private financial institutions and corporations across the world the motivation to work with us and adopt the plan we are launching today.”</p> <p>According to Cultivo, research shows that by 2050, total investment needs for nature-based solutions will amount to USD 8.4 trillion cumulatively, reaching over USD 536 billion per year, four times the amount invested today.</p> <p>Currently, only 14% of finance for nature-based solutions comes from private capital.</p> <p>Therefore, scaling investment from private capital companies is essential to fill the trillions of dollars of financing needed.</p> </div> </div> </div> </div> </div> </div> <div class="classy-style--margin-bottom paragraph paragraph--type--bp-simple paragraph--view-mode--default paragraph--id--2772 paragraph--width--full" style=""> <div class="paragraph__column"> <p>To bridge this gap, Cultivo is proposing a 5-step action plan for investors and private capital:</p> <ol><li>Offer nature as an attractive asset for investment</li> <li>Use technology to reduce transaction costs and create market efficiencies</li> <li>Take a holistic approach</li> <li>Measure the right attributes, and choose the right standards</li> <li>Make data transparent</li> </ol><p>One example of Cultivo’s Action Plan at work can be seen in Northern Mexico, where they are working with landowners to restore degraded land using Sustainable Grasslands Management.</p> <p>The project will reintroduce bison to the area, which is a step towards restoring the region to pre-human levels of biodiversity.</p> <p>The region acts as an international biodiversity corridor that serves as a habitat to species, such as an endemic subspecies of black bears, puma, wildcat, coyote, etc.</p> <p>Of the animals, 63 of these species are under some risk category, out of which 8 are endangered species.</p> <p>The restoration of grasslands will also generate certified carbon credits and means the project aligns to SDG goals related to Life on Land and Climate Action.</p> <p>Dr Piñuela and his team work passionately to prove that investing in natural capital can generate healthy financial returns for investors, nature and society.</p> <p>They use proprietary algorithms and technologies to find high-quality nature-based projects and then packages them into investment products targeted at financial institutions.</p> <p>Offsets generated by these projects are then sold, providing returns to investors and a long-term reliable income to landowners and local communities.</p> <p class="text-align-right"><span style="font-size:10px">Headline image: <a href="https://unsplash.com/photos/tGTVxeOr_Rs" target="_blank">niko photos on Unsplash</a></span></p> </div> </div> <div class="field field--name-field-background-style field--type-list-string field--label-above"> <div class="field--label">Background style</div> <div class="field--item">Light</div> </div> <div class="field field--name-field-sponsored field--type-boolean field--label-above"> <div class="field--label">Sponsored?</div> <div class="field--item">No</div> </div> <div class="field field--name-created field--type-created field--label-hidden field--item">October 2021</div> Fri, 08 Oct 2021 15:01:33 +0000 Business Spirit News reporting 206 at https://climatejournal.news