Business case for nature: Turning conservation into priority

Metro India News | Hyderabad 

Rapid industrialization and environment exploitation are causing huge loss to the living and non-living ecosystems. In the last 30 years, 600 documented plant and tree species have become extinct, while 38 per cent of world’s tree species are at risk of extinction.

Cumulatively, three-fourth of land surface is degraded, 85 per cent of wetlands are lost, one-third of forests are lost and 12.5 per cent of the total 8 million species are extinguished. Not only it, 90 per cent of marine fish stocks are overexploited or depleted, 66 per cent of ocean area is impacted and half of live coral cover is lost. In all, 47 per cent of the ecosystem has declined. 

Managing the Nature's loss

Damaging the nature is an act of suicide. As per the United Nations (UN), human beings still have an opportunity to retain and sustain nature. Carbon emission reductions can be achieved anywhere, and it has benefits worldwide. On the other hand, nature needs protection wherever an ecosystem exists. Therefore, collective as well as individual participation of all countries is essential. 

The United Nations Conference on Environment and Development (UNCED) at Rio Earth Summit in 1992 received commitments on nature’s conservation. COP15 in year 2022 made revisions, announcing a target of 30x30 – an ambitious commitment adopted by 200 countries, to protect and conserve at least 30 per cent of world’s lands, inland waters, coastal and marine areas by year 2030. The annual fund required is US$140 billion, whereas the actual spending is around 20 per cent. Adding to the shortfall, for every US$1 investment for nature protection, US$30 is spent on activities destroying nature. 

Nature conservation funding can come from green finance, allotments in Union budgets, subsidy redirections and private sector investments. Nature-related projects provide zero to low returns and nature capital funds yield up to 5 per cent, whereas investors expect at least 12 per cent returns from these funds. The result is, nature-tech software, data analytics and satellite monitoring are attracting funds than on-ground Nature conservation activities. Data centres and high-energy consuming industries should contribute through resource-use levies that reflect their environmental footprint.

There are times when some products, other than essential food or medicine, undergo research, development and commercialization processes. They require higher usage of natural resource and, therefore, should bear higher resource taxes. The significant amount of revenue leakage happens in the unaccounted usage of natural resources. Therefore, plugging these leakages can lead to sustainable financing and create greater accountability in the management of natural resources.

-Dr. Kishore Nuthalapati

The author is serving as the CFO of BEKEM Infra Projects Pvt Ltd, Hyderabad and also Regional Director of PRMIA, US for Hyderabad Chapter