Nature-Based Solutions to Combat Climate Change

After decades, biodiversity is finally at the forefront of global climate change proceedings. COP26 in Glasgow last year represented a major step forward in the protection of biodiversity. Headlines were made when more than 100 global leaders committed to halting deforestation and land degradation by 2030. This year at COP27, global leaders will continue to push for accelerated action on biodiversity and climate change – particularly because the UN biodiversity conference (COP15) follows on the heels of COP27, taking place in Montreal, Quebec in December 2022.

At both COP27 and COP15, the pending agreement on the post-2020 Global Biodiversity Framework is intended to elevate biodiversity as a strategic priority for government, business, and finance, as well as civil society. It is the focus on one of the COP27 presidency days, with panels on the nexus of biodiversity and climate change; solutions and benefits for biodiversity, climate, and society; and scaling up action to address the biodiversity and climate crises. It is clear that COP27 hopes to bring biodiversity and climate resilience to the heights of climate change mitigation in terms of attention, commitments, and finance.

The Importance of Addressing Biodiversity

Climate change and biodiversity loss are mutually reinforcing global challenges and are referred to as twin crises. Climate change is third of the five direct drivers of biodiversity loss. Simultaneously, nature and biodiversity loss hampers the ability of ecosystems to sequester carbon, improve air and water quality, provide habitat, support resilience (among many other ecosystem services) – further amplifying the consequences of climate change. Climate change impacts on nature, climate resilience, and the low carbon transition are therefore interconnected.

Another essential reason to protect and restore nature is that nature-based solutions are one of the most impactful and cost-effective resources in our efforts towards a resilient, net zero world. According to a July 2021 article from Patrick Greenfield of The Guardian: “…nature-based solutions such as restoring peatlands and adopting regenerative agriculture will contribute at least 10 GtCO₂e (gigatonnes of equivalent carbon dioxide) a year to global climate crisis mitigation efforts – around a third of the 32 GtCO₂e annual emission reductions needed as identified in the UN Environment Programme emissions gap report 2020 – while ensuring there are no negative impacts on biodiversity.”

Canada’s Need for Action

After missing its target of protecting 17% of its land and freshwater by 2020, there is a renewed need for stronger measures to be taken to protect biodiversity in Canada.

Canada’s ecosystems have been severely damaged in the past half century. According to the World Wildlife Fund’s 2018 Living Planet Report, mammal populations having decreased by more than 40% since 1970, amphibian and reptile populations by more than 30%, and fish populations by 20%. Development pressures, such as the need to build more housing and grow more food, and increasing temperatures threaten these ecosystems further, putting even more species and their populations at risk.

Leadership from the federal government on biodiversity can provide a framework for action at the provincial/territorial and municipal level, as well as other sectors.

Protecting biodiversity is also an important component of Indigenous reconciliation: “Many Indigenous communities live in isolated and often highly biodiverse areas, where living in balance with nature is crucial for survival. As keen observers of their environments, Indigenous peoples often possess knowledge linking various phenomena to ecosystem change – changes in weather patterns, for example, or the impacts of new species coming into their territories.”

It is vital to give Indigenous groups a voice in biodiversity policy, incorporating their knowledge of impacted land and water, and working with them to design protective and restorative measures. They have been keepers of the land since long before other cultures arrived in Canada, and their generational understanding of the land and water on which they have lived can help implement effective solutions for long-term biological sustainability.

Missing Pieces for Biodiversity Protection

Historically, governments have failed to achieve biodiversity-related targets. At a previous UN biodiversity conference, held in 2010 in Japan, global leaders agreed on the Aichi Biodiversity Targets, a series of targets to be achieved by 2020. Not one of the 20 established targets has been reached to date.

Obtaining finance for nature and climate resilience continues to be a hurdle, especially for adaptation and nature-based solutions in developing countries – hence its prioritization at COP27. In 2021, Canada committed 20% of its $5.3-billion international climate fund to this challenge, but further investment from other global communities is needed to help with the cost of protection and restoration.

One of the core challenges with funding and implementing nature-based solutions is the underestimated value of nature and biodiversity: how do you put a dollar value on the economic benefit they provide? There is a drastic mindset shift required for companies and governments to begin considering nature as an asset. Municipalities in Canada have begun adding nature within asset management planning, but work is needed to fully quantify the long-term financial benefits of protecting and restoring biodiversity.

There is also a gap in the baseline understanding of biodiversity and nature-based solutions – i.e., in real estate portfolios or investments – in both the public and private sector. Business strategies, operations and investments often have impacts or dependencies on nature (and receive benefits from nature) that are significant yet not measured or tracked. Loss of nature and biodiversity are not often considered in organizational or financial risk assessments. To begin to tackle these challenges, an important first step is to understand what data is available and establish a baseline. There is a need to clearly determine your impacts on biodiversity and nature, and the interdependencies between organizations and nature.

Reasons for Optimism

As we continue to educate the world on the significance of biodiversity and nature-based climate solutions, and their direct relationship to climate action, we’ll continue to make positive strides in the protection and restoration of our natural assets. We are integrating biodiversity and nature-based solutions into our climate change services where possible - which will not only help adaptation and mitigation, but can also improve biodiversity.

WSP is working with clients on how to consider biodiversity and nature-based solutions in infrastructure portfolio management and strategic decision-making. We have worked with government asset owners and municipalities and are seeing rapidly growing interest from clients which is only expected to grow.

The establishment of the Taskforce on Nature-related Financial Disclosures (TNFD) framework in 2021, following in the footsteps of the Task Force on Climate-related Financial Disclosures (TCFD), will provide a framework to help corporations understand their nature-related dependencies, impacts, risks and opportunities – and communicate these effectively to the financial community. WSP is also deeply familiar with both TCFD and the TNFD Frameworks, and is well-positioned to help clients understand and use them. As TNFD gains momentum, we will work with clients to understand the framework and the future of nature-related financial disclosures, including first steps to get started.