Finance Solutions for Nature 2025

This chapter contains deep dives on the 10 priority solutions identified in Chapter 1 (see Figure 3). Each deep dive opens with a short overview of the solution, then analyses the following three critical factors: –Potential to mobilize capital for nature –Ability to price nature into markets –Pathways to mainstreamIn this chapter, “pathways to mainstream” are actions specific to each solution, while Chapter 3 contains five action areas that apply across all 10 solutions. Each deep dive finishes with some examples. Deep dives also consolidate guidance and facilitate comparison between similar instruments, for example, combining sustainability-linked bonds with thematic bonds; and sustainability-linked loans with thematic loans. For more insight into the suitability of these instruments for different organizations, see Box 3. Figure 4 contains available evidence on estimated transaction range and global market size by solution. Comparing sustainability-linked and thematic instruments for nature finance BOX 3 Both sustainability-linked and thematic (“use-of-proceeds”) instruments are important tools for scaling-up finance for nature. Each offers distinct advantages depending on the issuer’s nature strategies, project pipeline, investor priorities and capacity to monitor and report on outcomes. Thematic or use-of-proceeds bonds or loans (green, blue, social and sustainability/sustainable etc.) are instruments whose proceeds are used for clearly defined projects with measurable outcomes, such as ecosystem restoration, regenerative agriculture or sustainable watersheds. Sustainability-linked bonds or loans are instruments whose financial terms are tied to entity-level KPIs, not specific projects. They allow broader use of proceeds – useful for companies without mature green capex pipelines, those in nature-intensive sectors (e.g. agribusiness, mining) or those with diffuse impact (e.g. energy, manufacturing). These instruments are often used as part of “transition finance” strategies that strengthen the credibility of issuers’ targets. 14 Finance Solutions for Nature: Pathways to Returns and Outcomes