The World Economic Forum (WEF) has issued a stark warning in its latest report, Investing in Natural Capital: Innovations Supporting Much-Needed Financing for Nature. 

The report highlights the urgent need to protect the planet’s natural capital—resources like forests, water, and biodiversity that are essential to human survival and economic activity.

Since 1992, natural capital per person has fallen by 40%. Over the last three decades, 420 million hectares of forest have been destroyed.

The economic toll is staggering. Nature loss costs trillions globally every year, including €450 million annually in Europe alone.

The report calls for a massive $2.7 trillion annual investment through 2030 to reverse the damage and create a nature-positive economy. This shift, it argues, could unlock $10 trillion in business value and generate 400 million jobs by the end of the decade.

82% of nature-related funding comes from public sources, amounting to $165 billion annually. However, private investment needs to catch up at just $35 billion. Bridging this gap is critical, with the total financing shortfall estimated at $711 billion annually.

Natural capital supports over half of the world’s GDP, yet ecosystems are in free fall. Biodiversity has declined by 69% since 1970, and without intervention, 90% of marine species could face extinction by 2100.

Despite the challenges, the report points to innovative solutions already making an impact.

New technologies, such as drones, satellite imagery, and environmental DNA sampling, are improving the monitoring and protection of ecosystems, creating new opportunities for investment.

Even in a tough year for venture capital, funding for “nature tech” startups rose by 18% in 2023. These companies use AI, sensors, and other cutting-edge tools to drive conservation efforts and measure ecological gains.

Real-world projects illustrate the potential for change. ARC Marine, a UK-based company, has deployed over 1,300 artificial reef cubes from recycled materials, creating 3,400 square meters of marine habitat.

Indonesia’s Terratai helps small businesses scale sustainable practices with investments under $500,000.

GroundUp Conservation, meanwhile, works with Indigenous communities in South Asia to integrate traditional knowledge into conservation efforts. These initiatives empower local people while protecting biodiversity and creating sustainable livelihoods.

However, major hurdles remain. Most investors prefer fast returns, yet ecological restoration often takes 7–8 years to become profitable.

Grassroots communities, which manage much of the world’s biodiversity, receive only 2.1% of global conservation funding.

The WEF report calls for unprecedented collaboration among governments, businesses, and communities. It urges the creation of new financial tools, stronger public-private partnerships, and better integration of natural capital into economic systems.

Global frameworks like the Kunming-Montreal Global Biodiversity Framework aim to mobilize $200 billion annually for conservation, but this is just a start.