The first State of Finance for Forests (SFF) report: Unlock. Unleash. Realizing forest potential requires tripling investments in forests by 2030 provides a global overview of public and private forest finance in 2023, comparing current flows with the investments needed to realize forests’ potential to address climate change, biodiversity loss, and land degradation. It integrates key private finance channels and nature-related asset classes such as certified commodity supply chains, impact investing, carbon and biodiversity markets, philanthropic funding, and private capital mobilized through public finance. The report finds that forests remain significantly underfunded: annual investment must increase from US$84 billion in 2023 to US$300 billion by 2030 and US$498 billion by 2050, leaving an annual gap of about US$216 billion. Private forest finance remains modest at US$7.5 billion in 2023, with most flows directed to lower-risk markets rather than tropical commodities that drive the bulk of deforestation. At the same time, potentially environmentally damaging subsidies reached around US$406 billion in 2023, and private financial institutions provided an estimated US$8.9 trillion in active financing to companies with high deforestation risk as of November 2024.
Government proposals for a unified UK construction regulator mark a significant shift toward environmental sustainability in construction. By integrating safety, product standards and net zero carbon performance, policy alignment could strengthen sustainable building design and accelerate the transition to net zero carbon buildings. The move is expected to push developers toward rigorous whole life carbon assessment, transparent lifecycle assessment and greater focus on embodied carbon in materials. Yet, the diversion of National Wealth Fund and clean‑tech R&D budgets threatens investment in renewable building materials, low carbon construction materials and digital design innovations essential for achieving carbon footprint reduction.
Approval of the Five Estuaries offshore wind expansion reinforces clean power supply crucial to energy‑efficient buildings and sustainable building practices. Electrification strategies depend on a greener grid to reduce the carbon footprint of construction and advance low carbon design principles inherent in sustainable construction. Rising annual temperatures, confirmed by the Met Office, demand eco‑design for buildings resilient to overheating, flood and drought. Government flood taskforce initiatives must complement broader circular construction strategies, ensuring that adaptation spending matches increasing risk.
Exposed flaws in carbon offsetting schemes have intensified scrutiny over carbon neutral construction claims. Developers are shifting from questionable credits toward verifiable on‑site reductions through whole life carbon strategies, improved building lifecycle performance and sustainable material specification supported by environmental product declarations (EPDs). Economic realism and life cycle cost assessment are becoming central to sustainable design, ensuring that embodied carbon metrics translate into genuine impact rather than accounting artefacts.
International developments strengthen this trajectory. Legal challenges to inadequate climate action, such as in Japan, reinforce the global imperative for decarbonising the built environment. Hong Kong’s restrictions on volatile organic compounds signal emerging benchmarks for green building materials and eco‑friendly construction. Attempts to close climate research centres risk undermining data vital for BREEAM v7 certification, circular economy in construction analysis and life cycle thinking in construction. Reliable research infrastructure underpins net zero whole life carbon targets, supporting broader sustainability goals across the global built environment.
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