How to unlock $10.1 trillion from the nature-positive transition

The global ambition to achieve a nature-positive status by 2030 requires the current decline in biodiversity to be reversed, not just halted.

However, as we approach the middle of this crucial decade, the trajectory of biodiversity loss has yet to show a significant shift. There is, therefore, an urgent need to intensify and expand the scope of transition actions toward a nature-positive future.

The World Economic Forum’s New Nature Economy Report series provides a compelling economic rationale for this shift. It projects that by 2030, fully embracing nature-positive transitions across three key socio-economic systems could unlock $10.1 trillion in business opportunities, with China poised to capture 20% of this potential.

These systems – food, land and ocean use; infrastructure and built environment; and energy and extractives – are foundational to our economy. A broad spectrum of economic sectors, deeply integrated within these systems, are at the forefront of adopting and driving these essential transitions.

How should players from different aspects of society approach the complex nature agenda? What are the essential elements in building a nature-positive economy that we need to realize the $10.1 trillion in business opportunities?

As parties to the UN Convention on Biological Diversity committed to implementing the landmark Kunming-Montreal Global Biodiversity Framework, regulators, investors and customers are increasingly calling for business action.

"Nature is not for free," says Andre Hoffmann, chairman of Massellaz SA, "We use nature because it is free; we lose it because it does not have a price. We need a robust decision model to measure the consequences of what we do: social, human and natural capital are needed. Leaders who can drive change is critically needed. They need to have long-term thinking that is also conducive to current prosperity."

Hua Jingdong, vice-chair of the International Sustainability Standards Board notes: "Over the past three to four decades, investors realized environmental and broader sustainability factors to discerning business opportunities and mitigating risks. The $10 trillion business opportunities can only be possible if we can unlock institutional investment, especially in emerging markets and developing economies. How? We'll need quality data, an international single language and mandatory reporting practices, just like financial reporting, to help accelerate the progress.

"Following the public feedback on its future work plan, the International Sustainability Standards Board has commenced a research project on biodiversity, ecosystem and ecosystem services, reflecting the growing interest among investors for improved disclosure."

China’s green, circular and low-carbon development strategy is highly aligned with the global nature-positive transition agenda. China updated its National Biodiversity Strategies and Action Plan 2023-2030 (mandated under article 6 of the convention) in January 2024, highlighting “business and biodiversity” as a priority action. On 27 May 2024, China's Ministry of Finance announced a generic standard for public consultation and issued a plan on unifying corporate sustainability disclosures and aim to establish a nationwide standard by 2030.

"The Chinese government's green development philosophy is highly aligned with the nature-positive vision. China is advancing green development project within Chinese contexts, such as Inner Mongolia, where photovoltaics are being utilized in deserted areas to help conserve soil and water and as the vegetation cover and ecosystem service capacity are improved, agriculture is gradually developed, thus combining energy transition, ecological restoration and support for local farmers' livelihoods," says Liu Shijin, Chinese chief advisor to the China Council for International Cooperation on Environment and Development.

Nature conservation and restoration is complex, yet there are frameworks and guidance that assist practitioners in understanding why nature matters to business. These tools help companies assess their impacts on biodiversity, manage their risks from biodiversity loss and capitalize on opportunities by aligning their strategies with the goals of supporting nature conservation and regeneration.

Climate action can provide approaches and lessons for business leaders and investors to draw on. Emissions reduction and adaptation, for example, can provide valuable insights for enhancing actions towards nature-positive. This reflection is crucial as it helps understand the effectiveness of various strategies and adapt them to meet the specific challenges of nature-positive transitions.

"Compared to the climate agenda, nature-related agendas are developing rapidly, yet they still lag significantly behind in progress," stated Yao Chenchen, the head of Environmental, Social and Governance at JinkoSolar Holding Co., Ltd. "This is particularly true for related frameworks and standards, which are not well-aligned."

“For businesses and financial institutions to make a full assessment of nature impacts and dependencies is important but takes time. Nature loss must be urgently reversed, so a practical step is to identify what are likely to be the two or three greatest impacts, and consider options for mitigating those,” raises Dimitri de Boer, regional director, Asia and chief representative, China at Client Earth.

Business leaders have begun rethinking about development and piloting nature-positive transition actions and their reflection and experiences are proving invaluable.

Cherie Nursalim, vice chairman of Giti Group says: "If I can experiment and work toward a development project that is true to the climate neutral and nature-positive philosophy, I am contributing to the collective global agenda. Also we welcome the launch of the International Mangrove Research Centre and G20 Bali Global blended finance alliance to scale promising solutions towards nature positive."

Meanwhile, Frederick Tsao Chavalit, chairman of TPC (Tsao Pao Chee) Group says climate change is the sum of all the pollution put out by humanity, adding, "We have to ask, what has polluted us to produce this much pollution? This is the root and the solution. We are harming not only humanity but also threatening the life system. The whole life system is nature.

"As Albert Einstein said, 'No problem can be solved from the same level of consciousness that created it.' We need to solve the issues of climate change, biodiversity loss, and pollution in a holistic way, and create a well-being and happiness economy. To do that, we need an inside-out systemic theory of change and a shift in mindset. In all, we have to tackle climate change head-on with action while focusing on education."

"One of the ways we are exploring nature-positive transition is to increase the greenery in our urban real estate projects," says Zheng Wanshi, the group chief strategy and sustainability officer at Frasers Property Limited, "This initiative not only helps in cooling down the surrounding temperature and improving air quality but also enhances the living conditions for building occupants. It is a modest example of how nature-based solutions can yield multiple benefits."

These insights from business leaders serve to inspire peer business leaders, illustrating the vision and reflections in paving the transitioning path towards nature-positive.

Addressing the complex nature agenda requires a multifaceted approach from different sector players, to build a nature-positive market.

Leaders from the public policy, academia and several economic sectors, such as agriculture, food and beverage, mining and metals, automotives, energy and infrastructure, as well as finance, convened at the 2024 Annual Meeting of the New Champions, having a dynamic discussion to delimitate the curve:

To capitalize on the $10.1 trillion in business opportunities, leaders from key economic sectors must consider these strategies indispensable components of their transition to a nature-positive economy. The urgency of this transformation cannot be overstated, as our planet’s health and future generations’ prosperity depend on the actions we take today.