Whereas some nature-based solutions (NbS) have a commercially mature business models, such as forestry and agriculture, emerging high-impact NbS markets, such as marine/coastal conservation, peatland restoration and species protection, are rapidly growing their share of both deal volumes and investment value.

A report, A Market Review of Nature-Based Solutions: An Emerging Institutional Asset Class provides a global mapping of private capital being used to support NbS business models, presented by the Green Purposes Company, in partnership with Finance Earth.

It is estimated that the global need for biodiversity conservation financing will reach approximately $854bn annually by 2030 in order to safeguard the natural environment and institutional investors are increasingly seeing the sustainable returns as an attractive asset class

However, with current spending of around $130bn per year, and predominantly provided by public and philanthropic sector organisations, private investment has a potential opportunity of over $700bn annually.

Trevor Hutchings, chair of the trustees of the Green Purposes Company, said: “Like low carbon before, and with the right actions by institutional investors and policy makers, we believe that investing in nature will become mainstream - the next global financial asset class.”

Report here.

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