New Issue of “Nitekim” Explores the Nature Positive Framework

The third issue of the “Nitekim” report, prepared by TSKB Economic Research, discusses the significance of the Nature Positive framework, introduced in response to the ecosystem crisis, in the context of macro-financial stability. Highlighting that ecosystem services are integral to the production process, both directly and indirectly, the study emphasizes that while the cost of utilizing these services is relatively minimal, the absence of these services can lead to significant and costly consequences. The study notes that financing for investments that preserve nature, restore ecosystems, and prevent biodiversity loss is becoming increasingly prominent, stresses the necessity of adopting a Nature Positive perspective to adapt to these changes and underscores the importance of developing institutional capacity to support this shift in approach.

The latest issue of “Nitekim,” published by TSKB Economic Research team, titled “An Economic Perspective on a ‘Nature Positive’ Framework: Light in Weight, Heavy in Importance” explores the critical impact of ecosystem services—such as filtration, pollination, water, air, and soil quality, and erosion control—on economic activities, emphasizing the essential need to transition to a nature-positive approach to manage existing and potential risks effectively.

The report, incorporating findings from the World Bank, highlights that even a partial collapse of ecosystems could result in a 2.3 percent reduction in global production by 2030, with the economic impact estimated to reach USD 2.7 trillion. The World Bank’s “Changing Wealth of Nations” report reminds us that per capita renewable natural capital has decreased across all income groups in 146 countries from 1995 to 2018. Specifically, in low-income countries, per capita renewable natural capital resources have declined by 25 percent since 1995. These figures highlight the economic significance of ecosystem services and the dangers associated with the depletion of natural capital.

USD 200 BILLION FOR ENVIRONMENTALLY FRIENDLY SOLUTIONS

The study indicates that from 1995 to 2018, Türkiye saw a 142 percent increase in produced capital per capita, while per capita renewable natural capital decreased by 20.1 percent. According to PwC, 55 percent of the value generated globally in a year, amounting to approximately USD 58 trillion, relies on nature. Additionally, over half of the market value of companies listed on major stock exchanges is sensitive to the health of ecosystems and biodiversity.

TSKB’s “Nitekim” study highlights that the proportion of bonds focused on biodiversity conservation increased from 5 percent in 2020 to 16 percent in 2023. The report also notes that approximately 7 percent of global production, equivalent to about USD 7 trillion, is invested annually in activities harmful to nature, while only USD 200 billion is allocated to environmentally friendly solutions. This data underscores concerns about the depletion of natural capital and emphasizes the increasing importance of investing in environmentally friendly solutions.

Other highlights from the third issue of Nitekim include;

• The importance of nature conservation and ecosystem services
• Erosion of natural capital in the current production process
• The risk to economic growth posed by the decline in natural capital 
• The negative impacts of the destruction of nature on social welfare and financial stability 
• The need for a nature-positive approach to incorporate a restorative perspective that goes beyond mere sustainability 
• The importance of environmentally friendly investments in financing 
• The need to adopt a nature positive perspective and improve institutional capacity
• The fact that natural capital in Türkiye has improved since 2006, yet per capita renewable natural capital remains below 1995 levels The World Economic Forum projects that the market for biodiversity loans could grow to USD 2 billion by 2030 and reach USD 69 billion by 2050.

You can access the full report here.