Corporate Biodiversity Funding

Nature finance has an investability problem disguised as a data problem. A few years ago, it was reasonable to argue that nature markets lacked data, tools and MRV infrastructure. Today we have more frameworks, more nature-risk tools, more disclosure initiatives, more MRV providers, more biodiversity datasets, and a growing number of MRV nature-tech startups. And yet, capital is still not flowing at anything close to the scale required. So maybe the bottleneck was never just “more and better data”. Maybe the harder issue is that many nature-related investments still do not fit into the underwriting frameworks investors know and is able/comfortable investing in. The risks are real. The timelines are long. The projects are often small or highly site-specific. Many benefits have no obvious buyer, no contracted revenue stream, and no clear market price. And in many cases, the cost of measuring and verifying outcomes can be material relative to the financial value created. That does not mean nature cannot be investable. Timberland and sustainable forestry have long been investable. Structured the right way investments can have outsized nature and climate outcomes. Not all nature outcomes are investable simply because they are measurable. and MRV is not a business model in it self. • A dashboard does not create a buyer. • A biodiversity metric does not create cash flow. • More granular data does not automatically make a project investable. I think we sometimes overstate the data gap because it is the easier gap to talk about. It is easier to say "𝘸𝘦 𝘯𝘦𝘦𝘥 𝘣𝘦𝘵𝘵𝘦𝘳 𝘥𝘢𝘵𝘢" than to say: "𝘞𝘦 𝘥𝘰 𝘯𝘰𝘵 𝘺𝘦𝘵 𝘬𝘯𝘰𝘸 𝘩𝘰𝘸 𝘵𝘰 𝘶𝘯𝘥𝘦𝘳𝘸𝘳𝘪𝘵𝘦 𝘵𝘩𝘪𝘴" "𝘛𝘩𝘦 𝘳𝘪𝘴𝘬/𝘳𝘦𝘵𝘶𝘳𝘯 𝘥𝘰𝘦𝘴𝘯'𝘵 𝘴𝘵𝘢𝘤𝘬 𝘶𝘱" "𝘐𝘵 𝘥𝘰𝘦𝘴𝘯’𝘵 𝘧𝘪𝘵 𝘸𝘪𝘵𝘩 𝘰𝘶𝘳 𝘢𝘴𝘴𝘦𝘵 𝘢𝘭𝘭𝘰𝘤𝘢𝘵𝘪𝘰𝘯 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬" "𝘚𝘩𝘰𝘸 𝘮𝘦 𝘵𝘩𝘦 𝘮𝘰𝘯𝘦𝘺" "𝘛𝘩𝘢𝘵’𝘴 𝘰𝘶𝘵𝘴𝘪𝘥𝘦 𝘰𝘶𝘳 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘶𝘯𝘪𝘷𝘦𝘳𝘴𝘦" "𝘛𝘩𝘦 𝘱𝘰𝘭𝘪𝘤𝘺 𝘴𝘪𝘨𝘯𝘢𝘭s 𝘪𝘴 𝘴𝘵𝘪𝘭𝘭 𝘵𝘰𝘰 𝘸𝘦𝘢𝘬" "𝘐𝘵 𝘥𝘰𝘦𝘴𝘯’𝘵 𝘧𝘪𝘵 𝘪𝘯𝘵𝘰 𝘮𝘺 𝘢𝘴𝘴𝘦𝘵 𝘤𝘭𝘢𝘴𝘴" Or simply: “𝘛𝘩𝘪𝘴 𝘪𝘴 𝘷𝘢𝘭𝘶𝘢𝘣𝘭𝘦 𝘧𝘰𝘳 𝘴𝘰𝘤𝘪𝘦𝘵𝘺, 𝘣𝘶𝘵 𝘯𝘰𝘵 𝘺𝘦𝘵 𝘧𝘪𝘯𝘢𝘯𝘤𝘦𝘢𝘣𝘭𝘦 𝘰𝘯 𝘤𝘰𝘮𝘮𝘦𝘳𝘤𝘪𝘢𝘭 𝘵𝘦𝘳𝘮𝘴” The next phase of nature finance I think should not ignore data. But it should stop treating data as the primary unlock. The unlock is not just more measurement. It is structuring and good sound cash flows. Aligning long-term capital, operational execution, market demand, risk allocation, and credible environmental outcomes. More on that soon ….

The externalities era is over. The internalisation era has begun. A powerful new whitepaper from the Value Balancing Alliance demonstrates what many of us in sustainable finance have long suspected: externalities don't stay external. They usually, and to a significant degree, move from narrative into numbers and get internalised as a core driver of asset pricing, cash flows, enterprise valuation, Value at Risk and cost of capital for boards, asset owners, investors and regulators. If unaddressed, they are an impediment to economic productivity. Key findings that should change how we allocate capital: 1. Markets are already pricing externalities: Research shows ~20% of corporate externalities are already capitalised in market valuations. Firms in the top carbon burden decile face +1.7% higher cost of capital. The question isn't whether externalities matter financially- it's whether your models reflect this reality. 2. The risk is material and asymmetric: Climate Value at Risk (CVaR) and Nature Value-at-Risk (NVaR) estimates range from 6-50% of global equity value depending on transition pathways. These aren't tail risks - they're central to valuation, especially in transition-critical sectors. Nowadays, central banks and supervisors, including the Network for Greening the Financial System (NGFS) scenarios map policy and climate pathways to sectoral earnings and default/loss rates, providing input curves for "Value at Risk" and "Expected Shortfall" stress paths. The tooling up to extend climate to nature-related financial risk quantification is underway. 3. The implementation gap is closing fast: Standard setters (ISSB, CSRD, ESRS, ISO14008/14054, ICMA, OECD et al) now anchor decision-useful sustainability information into core reporting regimes, valuation principles, transition finance guidance, and investment stewardship expectations: the infrastructure for decision-grade impact valuation is becoming operational. 4. For Transition Finance, this is the breakthrough moment: Externalities accounting provides the analytical spine that converts transition commitment narratives into quantified cash-flow drivers, risk factors, and investable guardrails. It's the bridge from narrative to numbers. If your company's externalities are 50% of its market value, are you running a business or managing a liability that hasn't been billed yet? #SustainableFinance #TransitionFinance #NaturalCapital #ImpactValuation #ESG #ClimateRisk #NatureRisk

Too often, we’re told it’s a choice, either meet humanity’s needs or protect the planet. That’s the wrong framing. It must be an AND. Nature can be an enabler of growth. It can absorb carbon, restore water systems, and support livelihoods; if we build systems that value both productivity and regeneration. Our latest article on regenerative landscapes lays it out clearly: 👉 $300B+ in investable opportunity 👉 15–30% potential IRRs 👉 Real-world solutions that blend agriculture, biodiversity, and water It’s time to stop choosing. We need solutions that work for people and planet together. Read more: https://lnkd.in/e4tFMjfg #RegenerativeLandscapes #NatureBasedSolutions #SustainableGrowth #ClimateAction #InvestInNature Boston Consulting Group (BCG) Camille Egloff Trine Filtenborg de Nully Eden Cottee-Jones Mikkel Pedersen WWF WBCSD – World Business Council for Sustainable Development Jack Bugas Shalini Unnikrishnan Arthur Ramos Lucas L Moino Matheus Munhoz

"Nature credits are just glorified charity donations" is what most skeptics still believe. My experience building market mechanisms for biodiversity tells a completely different story.    When we founded CreditNature, many questioned whether biodiversity could ever be meaningfully valued. Today, I'm seeing corporations offer significant premiums for high-integrity nature credits that deliver verified outcomes.    Why? Because these aren't just feel-good purchases - they're strategic investments addressing material business risks.    Just yesterday, EU Commissioner Roswall unveiled a roadmap for nature credits across Europe, acknowledging the €65 billion annual funding gap for biodiversity that public money alone cannot fill. 🔗 https://lnkd.in/dgMXaSdZ   This validates what we've been demonstrating: properly designed nature credits create value far beyond their cost basis when they:    1. Connect directly to a company's operational footprint and supply chain resilience    2. Provide independently verified outcomes (not just activities)    3. Deliver multiple co-benefits from climate to community livelihoods.    In our projects, we've seen firsthand how rigorous measurement transforms perceived value. When buyers can clearly see the return on their investment - whether through reduced regulatory risk, enhanced brand equity, or supply chain security - price sensitivity dramatically decreases.    As I wrote in my recent blog on nature credits (https://lnkd.in/dbirJ7Wx), this is becoming an imperative for forward-thinking CEOs who recognise that nature risk is business risk.    What's your experience with the evolving nature credit market? Are you seeing similar value drivers in your sector?    #NatureFinance #BiodiversityMarkets #SustainableInvestment

💬 "𝙲𝚞𝚛𝚛𝚎𝚗𝚝 𝚎𝚌𝚘𝚗𝚘𝚖𝚒𝚌 𝚊𝚗𝚍 𝚏𝚒𝚗𝚊𝚗𝚌𝚒𝚊𝚕 𝚜𝚢𝚜𝚝𝚎𝚖𝚜 𝚊𝚕𝚕𝚘𝚌𝚊𝚝𝚎 𝟹𝟻 𝚝𝚒𝚖𝚎𝚜 𝚖𝚘𝚛𝚎 𝚛𝚎𝚜𝚘𝚞𝚛𝚌𝚎𝚜 𝚝𝚘𝚠𝚊𝚛𝚍𝚜 𝚎𝚌𝚘𝚗𝚘𝚖𝚒𝚌 𝚊𝚌𝚝𝚒𝚟𝚒𝚝𝚒𝚎𝚜 𝚝𝚑𝚊𝚝 𝚍𝚒𝚛𝚎𝚌𝚝𝚕𝚢 𝚍𝚊𝚖𝚊𝚐𝚎 𝚋𝚒𝚘𝚍𝚒𝚟𝚎𝚛𝚜𝚒𝚝𝚢 𝚝𝚑𝚊𝚗 𝚝𝚑𝚎𝚢 𝚙𝚛𝚘𝚟𝚒𝚍𝚎 𝚝𝚘 𝚜𝚞𝚙𝚙𝚘𝚛𝚝 𝚗𝚊𝚝𝚞𝚛𝚎." A quote from the IPBES Nexus assessment released this week. So much to unpack, I limit myself here to the nexus between #economics, #finance and #biodiversity (the rest you can read here 👉 https://lnkd.in/e2KN5MSm) Economic activity and biodiversity are deeply interconnected. Biodiversity underpins key industries—agriculture, fisheries, forestry, and tourism—while providing critical services like pollination, water purification, and climate regulation. But the relentless pursuit of growth (the primary indirect driver) has caused biodiversity to plummet: 🌳 75% of land and 66% of marine environments have been significantly altered. 🐾 Over 1 million species face extinction, threatening ecosystems that support half of global GDP—$44 trillion annually. 💰 Adverse effects of economic activity on biodiversity amounts to $10-25 annually. This results in risks for that same economic system. Biodiversity loss undermines global economies: 💸 Could cost $10 trillion annually by 2050 if trends continue. 🌾 Declining pollinators risk $577 billion/year in crop production. 🌊 Ecosystem collapse raises costs across agriculture, fisheries, and energy, impacting industries and driving financial risk. To reverse this, we have a financial challenge: 🔴 Current conservation funding: $124–$143 billion/year. 🔴Required funding: $598–$824 billion/year, leaving a $500–$700 billion gap. 🔴Governments spend $500 billion annually on harmful subsidies—redirecting just 10% could halve this shortfall. And we have a paradox in this nexus: Investing in restoration and preservation yields high returns: 🌱 Mangrove restoration delivers 10x ROI in ecosystem services (flood protection, carbon storage). 🌿 Nature-based solutions mitigate climate risks, protect assets, and future-proof economies. 💸 Green finance tools—like biodiversity credits and green bonds—offer scalable investment opportunities. Two problems: 🟥 The risks are longer-term 🟥 The (short-term) benefits are non-financial The report outlines 71 actionable proposals focused on areas such as sustainable consumption, pollution reduction, improved governance, and risk management. These are vital steps in addressing pressing global challenges. However, real success requires us to confront a deeper truth: our current system—dominated by finance and short-term economic priorities—cannot deliver the transformative change needed. Tweaking the system won’t suffice. Superficial changes lead to superficial results. To achieve true sustainability, we must rethink and redesign the foundations of our economic and financial systems.

The Nature Investor Nexus 🌎 A growing convergence of ecologists, technology innovators, entrepreneurs, and finance professionals is reshaping the landscape of nature finance. This new investor nexus is broadening the scope of sustainable investments by integrating advanced technologies, innovative financial instruments, and new business models, making nature finance more relevant to investors across sectors. Despite macroeconomic challenges, the nature tech sector has demonstrated resilience, with investments rising by 18% and deal volume increasing by 27% in 2023. Early-stage ventures have shown the most promise, growing by 35%, indicating strong investor interest in innovation that addresses environmental challenges while generating returns. Prominent funds such as Mirova Natural Capital, HSBC's Pollination/Climate Asset Management, and Patagonia's Tin Shed Ventures are leading the charge in attracting private capital for nature-based opportunities. Sectors such as agriculture, mining, and consumer goods, which are closely tied to natural capital, are increasingly recognizing the long-term value of incorporating sustainable practices into their business models. Frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) are encouraging businesses to assess and mitigate risks tied to nature dependencies. This shift is not only about compliance but also unlocking economic opportunities by embracing nature-positive models, which can open doors to new markets and drive sustainable growth. However, challenges remain. The sector requires more patient capital to support long-term projects, particularly those in ecosystem restoration, which typically take longer to yield financial returns. Additionally, current economic models often undervalue natural capital, making it difficult for sustainable investments to compete with traditional industries. As the nature finance ecosystem expands, enabling organizations such as professional service firms, audit bodies, and standard-setting institutions are playing a crucial role in ensuring trust, transparency, and proper valuation in this rapidly growing sector. Source: WEF #sustainability #sustainable #business #esg #climatechange #climateaction #sdgs #nature #finance #

🌍 🌱 This isn't philanthropy—this is financing a green future.*🛠️ I'm excited to share my latest article, "This Isn't Philanthropy", featured in the St Anne's College, University of Oxford annual publication 'The Ship'. In the piece, I explore the urgent need to bridge finance and Nature—not out of philanthropy, but because valuing Nature as an asset class is critical for creating a world worth living in. From my early memories in Holland, skating on frozen canals, to witnessing the melting glaciers in Argentina, my journey has been shaped by a profound connection to Nature. As the co-founder of Rebalance Earth, I'm on a mission to redirect the flow of capital toward Nature restoration, not just to combat climate change and biodiversity loss but to prove that investing in Nature creates financial returns and a world worth living in. 📈 Why is this important? Nature's infrastructure—rivers, forests, wetlands—provides services worth an estimated $140 trillion annually, far exceeding global GDP. Yet, we continue to degrade it. It's time to make Nature an investable asset class, solving both climate and biodiversity crises while delivering tangible economic value. For long-term investors like pension funds, this offers an opportunity to invest in resilient, nature-based infrastructure projects that generate financial and environmental returns whilst mitigating physical and transition risks from climate change. 📖 Read the full article to discover how we can 'rewiggle' capitalism to align with Nature, using solutions like 'Nature as a Service' (NaaS) to create financial resilience for businesses and investors alike. #2PercentForNature, #Adaptation, #Biodiversity, #ClimateAction, #ClimateAdaptation, #ClimateCrisis, #ClimateResilience, #GreenFinance, #NatureAsAService, #NatureBasedSolutions, #NatureInfrastructure, #NatureMeansBusiness, #NatureRestoration, #ProtectAndRestore, #RebalanceEarth, #Resilience, #SustainableFinance, #Worldworthlivingin

In finance, the future is worth less than the present. In nature, the future is worth more. That simple inversion explains much of the market’s structural delay in addressing the climate crisis — we’re discounting time in the wrong direction. Financial logic reduces the long term; nature amplifies it. Our new FamaGaia FIDC report shows, with data and real stories, that this logic can be reversed. We finance those who protect ecosystems and strengthen territories — from Amazon and Caatinga cooperatives to agroforestry projects in the Cerrado and Atlantic Forest. So far, 13 investments, more than 4,000 people directly impacted, and returns in line with the benchmark. More than a product, FamaGaia is a thesis: 📍 credit as a tool for regeneration 📍 impact as a strategy for value creation 📍 finance as a co-author of a just transition As COP30 approaches in Brazil, the financial sector faces a choice: to keep reacting to the inevitable — or to co-author solutions.

In 2022, approximately $5 trillion in private #finance went toward activities with direct negative impacts #nature, a figure 25x greater than the #investment in #naturepositive initiatives. This gap between current #biodiversity finance and future needs emphasizes the growing challenge of curbing nature loss. While some #innovative financial instruments have attracted limited private investment, they have not yet achieved the #scale necessary for significant impact. The most promising opportunity for nature-related investment lies in shifting #financial flows within the real #economy - moving away from harmful activities and toward more #regenerative alternatives. The development of profitable, nature-friendly #businesses is essential for raising the trillions of dollars needed to meet the #GlobalBiodiversityFramework's goals and avoid ecosystem collapse. BloombergNEF’s report profiles 12 companies that are addressing these challenges across various sectors. These companies span industries like #agrifood, materials, industrials, consumer goods, and data services, and range from large, publicly listed firms to small #startups. While these #casestudies highlight promising opportunities, they are not exhaustive, and there are many more potential investment avenues in the nature-related space. The report also draws parallels between the emerging nature #transition and the #energy transition, which saw a significant increase in investment over the past decade. The energy transition rose from $200 billion in 2010 to $1.8 trillion in 2023, suggesting that the nature transition could follow a similar path, though it will require a broader array of #technologies and interventions. In conclusion, the nature-positive investment landscape is diverse and still developing, but it presents significant potential for both financial returns and #environmental impact. The energy transition offers a potential roadmap for scaling such investments, though addressing nature loss will require a wider range of solutions than the more focused energy sector. Link: https://lnkd.in/dTkwgZbv

Al Gore's Just Climate fund raises $175M from Microsoft and CalSTRS to back climate startups #JustClimate, the climate-focused #VC firm backed by Al Gore’s Generation Investment Management, has raised $175 million from Microsoft’s Climate Innovation Fund and CalSTRS to accelerate nature-based climate investments. While climate finance has historically prioritized energy and transportation, Just Climate is shifting focus to natural solutions such as reforestation, biological fertilizers, and biodiversity protection technologies—critical areas that remain underfunded despite their potential to reverse emissions and restore ecosystems. This #fund expands Just Climate’s investment strategy beyond industrial climate solutions to include agriculture, forestry, and land-use change, which contribute to 15% of global emissions. The firm has already made its first investment, leading the Series B round for NatureMetrics, a company using eDNA technology to assess biodiversity. By directing capital towards restoration finance platforms and carbon verification technologies, Just Climate aims to bridge the gap in funding for nature-based solutions while delivering measurable climate impact. With major backing from institutional investors like Microsoft and CalSTRS, this fund signals a growing recognition that nature is a powerful—and investable—tool in the fight against climate change. The article on TechCrunch in the first comment.