Finance Solutions for Nature 2025

FIGURE 4 Estimated transaction range and global market size by solution Priority solutions1Estimated transaction range2 Estimated global market size3 Sustainability-linked bonds (SLBs)Annual issuance (2024): ~$55 billion Nature-related issuance: No reliable estimate Thematic bonds Annual issuance (2024): ~$630 billion Nature-related issuance: ~$113 billion Sustainability-linked loans (SLLs)Annual issuance (2023): ~$707 billion Nature-related issuance: No reliable estimate Thematic loans Annual issuance (2023): ~$275 billion Nature-related issuance: No reliable estimate Impact funds Total AUM6 (2024): ~$1.6 trillion Nature-related AUM: No reliable estimate Environmental credits N/A Debt-for-nature swaps (DNS)Cumulative debt restructured (1980-2022): ~$3.7 billion (likely >$5 billion up to 2025) Payments for ecosystem services (PES)Annual transaction volume (2018): $36-42 billion $0.1M $1M $10M $100M $1B $10B $100-$3B $10M-$10B $50M-$5B $5M-$500M $20M-$1B $0.05M-$10M $10M-$1.6B4 $0.1M-$10M5 Notes: 1. This figure excludes natural asset companies (NACs) and internal nature pricing (INP) due to low or no volume of transactions for assessment; 2. Transaction range based on review of major nature-related transactions; may bundle smaller projects and as such does not always represent project size; 3. Market size based on best available evidence in the latest possible year; proxies and estimates used where necessary; 4. Conservation funding raised through DNS ranges between 5-60% of total deal value, with an average of ~46% in recent transactions, according to data from The Nature Conservancy; 5. National PES schemes, which aggregate different transactions and projects, may exceed $100 million in overall size; 6. AUM = assets under management. Source: World Economic Forum and McKinsey & Company analysis. Finance Solutions for Nature: Pathways to Returns and Outcomes 15