October 1, 2024

By Malorie Bertrand

A new report from the Smart Prosperity Institute and Nature United, Unlocking the Economic Power of Natural Climate Solutions, reveals how investing in nature is essential to conserve our environment and a powerful force to strengthen our economy. 

Creating many benefits at once

Natural Climate Solutions (NCS) are an unparalleled opportunity to tackle climate change, boost biodiversity and advance reconciliation. At the same time, NCS can help build economic prosperity, competitiveness and resilience in Canada’s economy. These solutions include a variety of landscape-specific actions, such as protecting wetlands at risk of conversion, better managing agricultural lands and restoring forests. 

By better protecting, managing and restoring nature, NCS are one of our best bets to immediately reduce emissions while creating local jobs, reducing the costs of doing business, and generating new revenue streams. Natural Climate Solutions are locally led and regionally specific, which helps ensure that Indigenous and rural communities are leaders and beneficiaries. 

An unrealized economic opportunity

Research shows that NCS are a major economic opportunity for land-based businesses and sectors, and the rural and remote communities that steward them. For example, forest restoration in Southern Ontario contributes $12 million annually to the provincial economy. Helping farmers adopt nutrient-management practices can result in up to $153 in on-farm benefits per hectare each year.

The broader economic benefits of NCS like clean water, healthy air and flood protection are worth billions annually for Canadian communities. Standard accounting approaches typically undervalue or do not account for these benefits. This means these solutions are uncompensated, which suppresses investments and leaves money on the table. 

Canada is missing out, but it is not too late. The country faces significant economic risks if we do not act on NCS and substantial economic opportunity if we properly account for nature and invest in it.

Canadians support Natural Climate Solutions

Canadians strongly support investments in NCS, which address people’s concerns about nature and the economy. New polling from Abacus Data commissioned by Nature United shows that 84% of Canadians support the pursuit of more Natural Climate Solutions. Canadians spanning all provinces, ages, genders, educational backgrounds and political orientations are ready to stand behind these solutions. Polling shows that more than 80% of Canadians want governments and the private sector to work together to realize the NCS opportunity.

Canada can unlock the economic power of Natural Climate Solutions 

New research shows that all the conditions are in place for NCS to flourish in Canada: record levels of public investments in nature, Indigenous leadership, broad support from Canadians, investment-ready hotspots and increasing interest from the private sector to invest in immediate emissions reductions that work for people and the planet. 

Now is the time for leaders across sectors and communities to join forces to fill knowledge gaps, demonstrate demand for NCS investments and explore policy and market solutions needed to help the dollars flow. Increasing investments in these solutions can help communities across Canada build more resilient, inclusive and competitive economies.

Read the report here.