New Research Reveals the Untapped Economic Potential of Natural Climate Solutions in Canada
Natural Climate Solutions can bolster profitability and economic resilience, according to report by the Smart Prosperity Institute and Nature United
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Marc Griebel
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Email: marc.griebel@natureunited.ca
Alongside their extraordinary power to reduce Canada’s emissions in the near term, Natural Climate Solutions can cut costs, reduce risks and bolster the profitability, competitiveness and resilience of the forestry and agricultural sectors and Indigenous economies. These solutions also offer the potential for substantial capital flowing into rural and remote communities.
These findings are shared in a new report, Unlocking the Economic Power of Natural Climate Solutions, produced by the Smart Prosperity Institute and Nature United, which shows that Natural Climate Solutions (NCS) can create wide-ranging economic returns, from jobs and increased profits, to returns for investors, through both traditional and innovative funding mechanisms, such as bonds, funds, and carbon credits.
Quote: Amanda Reed
This new research takes the next critical step and starts to map out how we can access the full potential of Natural Climate Solutions, across jurisdictions, sectors and communities.
“Through recent polling, we know that Canadians want to see the public and private sectors working together to realize all of the benefits that nature provides — including the ways in which protecting, better managing and restoring nature can boost Canada’s economic prosperity and resilience,” says Amanda Reed, the Strategic Partnerships Director at Nature United. “But if we expect resource sectors, investors and others to embrace economies that work in harmony with nature, they need data and business cases that illustrate the opportunity.”
“This new research takes that next critical step and starts to map out how we can access the full potential of Natural Climate Solutions, across jurisdictions, sectors and communities.”
In 2021, a landmark study published in Science Advances estimated the mitigation potential of investing in NCS in Canada at 78 megatonnes of CO2e annually, the equivalent of approximately 11% reduction in annual emissions that year. NCS offer these substantial emissions reductions at a low cost, and unlike new technologies, these solutions are available now, scalable and offer a host of other benefits, including increased wildlife habitat, cleaner air and water, and resilience to extreme weather events.
This study connects the dots between nature, climate action and economic benefit, illustrating how NCS offer an important economic opportunity. For example, supporting farmers in the adoption of nutrient-management practices can result in up to $153 in on-farm benefits per hectare each year. The report proposes an eight-step approach to developing business cases that account for these values when assessing investment opportunities, followed by a selection of “hot spots” ripe for investment.
Quote: Mike Wilson
Canada will face significant economic risks without action on Natural Climate Solutions – and substantial economic opportunity if nature is properly accounted for and invested in.
The three hotspots that are ripe for immediate investment in NCS pathways include: agricultural lands and wetlands of Southern Prairies Region and Southern Ontario, and forestry in British Columbia. These hotspots contain at least two different landscape types or can support multiple NCS initiatives, reflect multi-jurisdictional policy opportunities, and could attract blended finance investments. Further, the research illustrates how a strong business case can be developed and tailored to attract NCS investments in these regions.
“Across all three hotspots, the findings clearly indicate that Natural Climate Solutions offer economic benefits that are often undervalued, unaccounted for and uncompensated, which ultimately results in suppressing investments and leaving money on the table,” noted Mike Wilson, Executive Director, Smart Prosperity Institute. “Canada will face significant economic risks without action on Natural Climate Solutions – and substantial economic opportunity if nature is properly accounted for and invested in.”
New polling by Abacus Data commissioned by Nature United shows that the majority of Canadians — more than 80% — want jurisdictions and corporate sectors to work together to realize this opportunity, particularly to create the conditions for businesses to adopt Natural Climate Solutions to achieve environmental, ecological, and economic goals.
“The science and Canadians are saying the same thing — it’s time for leadership across jurisdictions and sectors in Canada, and alongside Indigenous, rural and remote communities, to demonstrate the demand for NCS investments, and explore solutions needed to help the dollars flow,” says Reed of Nature United, “That’s why we are looking to bring leaders in these sectors together to advance business cases for NCS investments in hotspots, and explore the changes that can enable these investments, to help our vital natural resource sectors flourish in harmony with nature into the future.”
Nature United was founded as a Canadian charity in 2014, building on decades of conservation in Canada. Headquartered in Toronto, our organization has field staff located across the country. Nature United supports Indigenous leadership, sustainable economic development and science and large-scale conservation, primarily in British Columbia, the Northwest Territories and Manitoba. Our organization is also working to accelerate Natural Climate Solutions at national and regional scales. To learn more, visit natureunited.ca or follow @natureunited_ca.
We are the Canadian affiliate of The Nature Conservancy, a global conservation organization with more than a million members and a diverse team that includes more than 400 scientists. Our global organization works in 79 countries — either directly or through partnerships — to conserve the lands and waters on which all life depends. To learn more, visit www.nature.org or follow @nature_press.