Protecting 30% of New Zealand’s lands and seas could help the country save more than NZ$270 billion ($163,6 bln) over the next 50 years, according to a study released on Thursday.
The study, carried out by consultancy EY and commissioned by WWF-New Zealand, estimated the costs and opportunities of halting and reversing biodiversity loss by 2030, as agreed by countries under Targets 2 and 3 of the Kunming-Montreal Global Biodiversity Framework (GBF).
According to the authors, initiatives such as creating more marine protected areas (MPAs), restoring degraded wetlands, and regenerating land to support native forest growth could bring a net benefit to the country’s economy of an estimated NZD$272 bln ($165 bln) over 2025-80.
Moreover, if nature-positive investments are increased, economic benefits are expected to outweigh the costs of inaction by 2035, resulting in long-term economic growth.
Currently, New Zealand spends around NZ$4 bln annually on biodiversity, with most of the funding coming from central and local governments.
The study estimated that the country needs around NZD$26.5 bln every year over 2025-30 to meet the GBF targets, an increase of approximately 6.5 times the current spend on nature.
“While this is a sizable sum, the longer we wait, the more costly the action becomes – and the more likely irreversible damage occurs,” the report said.
The report also suggested implementing the use of nature-based solutions (NBS), as it could result in saving over NZ$50 bln for both the government and landowners.
As the private sector is considered a key actor in supporting a shift towards a nature-positive future, the report urged the government to create the right conditions for businesses to invest in biodiversity by:
- Mandating corporate disclosures on nature impacts
- Supporting industry efforts to develop innovative and sustainable practices
- Establishing an investment fund or blended finance investment mechanism to target nature-related projects
- Establishing a biodiversity or carbon credits framework
- Developing a nature-positive labelling system to help businesses make credible claims
The report suggested that biodiversity and carbon credits could be sold either through a voluntary or a compliance market, including expanding the New Zealand emissions trading scheme to include nature-based solutions beyond forestry.
Notably, New Zealand’s government in July last year launched a consultation on establishing a domestic voluntary biodiversity credit scheme in a bid to reverse natural ecosystem decline. However, that has not been followed up on by the conservative government that won office in the election later in the year.
By Giada Ferraglioni – giada@carbon-pulse.com
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