The report puts forward the case for addressing the UK’s 'nature finance gap’ by spending £56bn over the next 10 years to address historic underinvestment.
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Research published today by the RSPB has found investing £5-6bn annually in nature recovery would generate £80bn of new economic activity over the next decade, create 80,000 skilled jobs and up to £1 trillion in wider benefits to society.
The Economic Case for Nature, produced by environmental economics consultancy eftec on behalf of the RSPB, was set to be released at an event during this year’s Blue Earth Summit, part of London Climate Action Week. With the Met Office having issued a Red Extreme Heat Warning for Wednesday and Thursday, and June’s all-time daily record temperature forecast to be broken, the launch event has been cancelled and moved online for safety reasons.
The report reveals that along with new employment opportunities and economic growth, substantial investment in nature would provide a host of additional benefits including increased food security, protection for communities from flooding, and help clean up the UK’s polluted rivers.
The UK is one of the world’s most nature-depleted countries and the loss of nature has gone hand-in-hand with the country’s long-term economic decline. With more than half of the global economy moderately or highly dependent on nature and its services, the report says a failure to factor the risks posed by nature loss into financial and business decision making is leaving the UK economy and financial sector exposed.
The report puts forward the case for addressing the UK’s 'nature finance gap’ by spending £56bn over the next 10 years to address historic underinvestment. Areas of focus would include:
Analysis has shown investment in these areas would support £80bn of new economic output, equivalent to a 15 percent increase in the size of the UK construction sector. It would also create 80,000 long-term, skilled jobs, many in rural communities with lower employment opportunities.
In addition to the direct impact on the UK economy, the report highlights wider benefits to society from nature restoration worth up to £1 trillion. These include improved air quality, better access to nature, and economic and food security. Creating a new plan for green finance would also help the UK build on its reputation as a leader in nature recovery research and policy, create new export opportunities and position itself as a global centre for nature finance.
Leading economist Professor Sir Partha Dasgupta has described the new report as “policy analysis at its most significant”.
In his landmark 2021 review The Economics of Biodiversity: The Dasgupta Review, he noted that globally, between 1992 and 2014, the stock of natural capital per person declined by nearly 40%. A key finding of Prof. Dasgupta’s review is that our economy is embedded in nature and we are currently drawing down more from nature than its ability to replenish itself. As a result, we need to reduce the demands we place on nature and also invest in its recovery.
The Economic Case for Nature report is being published amid an inquiry by the Environmental Audit Committee into the role played by HM Treasury in shaping the UK’s response to climate change, nature loss and wider environmental sustainability. The RSPB is calling for the Treasury and the Office for Budget Responsibility to assess both the economic and fiscal risks from nature at every fiscal event as standard.
Dougie Peedle, the RSPB’s Head of Nature Positive Economy, said: “A bold new plan for green finance in the UK is long overdue. By failing to close the nature funding gap we are squandering the chance to create jobs, put money in people’s pockets, support our national security and reap the countless benefits a healthy natural world can have on all our lives.
“Nature has the potential to boost the UK economy, yet for decades successive governments have favoured short-term thinking over long-term prosperity and neglected one of the nation’s greatest assets. This report clearly shows that new skilled jobs, economic growth, and additional benefits that come from improving air quality, water quality and restoring habitats like peatland and woodlands will all flow from sustained investment in nature recovery.”
Katie-jo Luxton, the RSPB’s director of conservation, said: “It’s a striking irony that we’ve had to call off a launch event for a report advocating for major investment in nature recovery, including action to tackle the impacts of climate change, due to extreme weather. Concern for people’s health and wellbeing has led to this decision, and it is those same concerns that should be driving sustained investment in nature.
“Successful businesses rely on a productive workforce. With research showing that for every one degree the temperature rises above 20C, productivity falls by 2-3%, the economic case for immediate action has never been clearer.”