Nature markets’ valued at $7 trillion as taskforce calls for robust governance to avoid greenwashing

New Taskforce on Nature Markets paper presents a detailed taxonomy and economic sizing of nature markets in USD, and calls for robust governance of rapidly expanding nature markets to avoid greenwash, halt illegal markets and deliver nature positive and more equitable outcomes.

A new report from the Taskforce on Nature Markets maps a detailed taxonomy and economic sizing of nature markets, i.e. those markets that explicitly value and trade nature including voluntary carbon credits, conservation, soft commodities and nature-based solutions for carbon sequestration. 

The ground-breaking research, being produced for a forthcoming Taskforce Knowledge Partner paper - finds nature markets already produce and trade more than US$7 trillion worth of goods and services annually, equivalent to 8.6% of global GDP.

More than half of this value comes from agricultural production alone. The study also finds that an estimated 1.2 billion hectares of privately owned asset value is estimated at US$ 8.6 trillion, 85% of which is agricultural land.

This is a ‘modest tip of the iceberg’ as increased awareness of nature’s vulnerability and value scales up products that quantify and protect the natural world.

Sandrine Dixon-Declève, Taskforce member, Co-President, Club of Rome and Chair, European Commission's Economic and Societal Impacts from Research and Innovation Expert Group, said “Nature markets are a bridge to a total shift in our economic system.”

The paper – Nature in an era of crises completes the first phase of the Taskforce on Nature Markets work in promoting equitable, nature-positive, and net zero outcomes for the world economy and nature.

Our US$95 trillion global economy depends 100% on nature and faces multiple climate and nature crises over the coming decades-including heatwaves, droughts, supply chain disruptions, and floods. The paper states that if nature is explicitly valued and traded in nature markets, it creates an opportunity to deploy policy and market mechanisms that shape its value and the distribution of its economic benefits.

Nature markets are already booming in sectors from credit to commodities, and increased awareness of nature’s vulnerability and value is rapidly scaling up nature’s part in the economy. Our dependence on nature is moving from something that is invisible and under-valued to one that is explicitly recognized, valued, and traded.

If markets can be shaped to treat nature as a regenerative asset they could be a critical part of addressing the inextricable crises emerging at the finance-nature nexus.

Read the full article here.