State of finance for nature 2026: Nature in the red - Powering the trillion dollar nature transition economy

The 'State of finance for nature 2026' report sets out the latest numbers tracking global finance flows to Nature-based Solutions (NbS). The 2026 report offers a new approach to accelerate the urgent transition to phase out nature negative finance and to scale up investment in NbS and nature, known as the 'Nature Transition X-curve'. The report emphasises the need for further investment by highlighting the benefits of NbS. Findings show that NbS not only contribute to nature-positive outcomes, but provide highly cost-effective disaster risk reduction solutions, with their preventative measures giving competitive returns on investment through avoided losses. When properly designed, NbS can also deliver gender equality and amplify Indigenous Peoples and local knowledge systems.

The proposed transition - the Nature Transition X-curve - illustrates the dual challenge of phasing out harmful finance while scaling up NbS. This is not just an environmental agenda but an economic transformation: redirecting harmful subsidies, integrating NbS into fiscal frameworks and mobilising private finance to redirect sectors towards resilience and long-term value creation. The curve can facilitate the needed increase in NbS investment to meet global commitments under the Rio Conventions, which must increase by two and half times to US$571 billion by 2030.