State of Finance for Forests 2025

United Nations 6 months ago

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.
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layersDaily Sustainability Digest

Published about 2 hours ago



Low‑carbon construction is shifting from ambition to accountability as policy, finance and litigation converge to redefine environmental sustainability in construction. A landmark analysis warns that climate‑related legal action creates systemic risk for firms overstating sustainability performance, accelerating demand for transparent whole life carbon assessment and auditable data on embodied carbon in materials. Boards are re‑evaluating governance frameworks to prove compliance with net zero whole life carbon targets and demonstrate credible life cycle thinking in construction.

Global regulation is tightening as the US ruling on green shipping aligns with supply chain decarbonisation across logistics and materials, intensifying scrutiny of embodied carbon and lifecycle assessment in manufacturing and transport. The expansion of circular economy principles in contaminated site remediation and resource recovery highlights how sustainable construction now depends on end‑of‑life reuse in construction and the creation of secondary markets for low carbon construction materials such as recycled glass, polymers and aluminium. These materials underpin eco‑design for buildings, green building materials research and sustainable material specification strategies that strengthen resilience and resource efficiency in construction.

The rapid rise of energy‑intensive AI data centres has made low carbon design and carbon neutral construction central to planning approvals. High‑density, energy‑efficient buildings designed around renewable building materials and smart power integration now serve as testbeds for BREEAM V7 frameworks. Developers are integrating life cycle cost analysis, circular economy in construction metrics and environmental product declarations (EPDs) to ensure alignment with international carbon footprint reduction standards.

The transition to net zero carbon buildings marks a decisive shift from voluntary green construction initiatives to regulated sustainable building practices. Competitive advantage rests on measurable building lifecycle performance and the ability to quantify the carbon footprint of construction through consistent lifecycle assessment. For contractors and architects, sustainable building design and green infrastructure integration have become essential to decarbonising the built environment. Sustainability is now the baseline for every tender, defining a new era of transparent, data‑driven, eco‑friendly construction.

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