United Nations Environment Programme Finance Initiative head urges shifts in capital allocation and nature risk assessment ahead of COP17

In an article first published in Environmental Finance, Eric Usher, head of the United Nations Environment Programme Finance Initiative, called for redirecting financial flows toward nature protection and restoration ahead of the October COP17 biodiversity conference. He outlined four priorities: shifting capital away from environmentally damaging activities, developing sectoral transition pathways, prioritizing freshwater and integrating nature into lending, investment and insurance decisions. The article cites estimates that roughly USD 30 supports activities harmful to nature for every USD 1 invested in protecting it, while around 55% of global gross domestic product depends on nature. Redirecting funding from damaging practices toward activities such as regenerative farming, forest restoration and renewable energy could help close the nature financing gap while reducing risks from ecosystem degradation. Transition pathways should reflect distinct sectoral pressures, including land conversion in agriculture and habitat disruption in infrastructure. Freshwater warrants particular attention because of its role across the economy and growing pressure from hotter, drier summers and expanding data centers. For financial institutions, Usher urged assessing whether businesses understand and manage their dependencies and impacts on nature. In agriculture, for example, drought and restrictions on water extraction can cause crop losses, impair loan repayment and trigger insurance claims. Measures such as precision irrigation, rainwater harvesting and drought-resistant crops can reduce exposure. With COP17 serving as a stocktake of progress against the Kunming-Montreal Global Biodiversity Framework, he called for governments to support the finance sector in making these shifts.