Finance Solutions for Nature 2025

Appendix A: Scoring methodology TABLE A1 Criteria to identify priority finance solutions for nature Criteria Description Potential evidence points Scoring guidelines Category: Scalability 1. Ease of structuring The ease and speed with which investments can be mobilized. –Time to mobilize capital or structure transaction –Number of stakeholders involved –Complexity of negotiations –Low (1): Complex and largely bespoke transactions with many stakeholders –Medium (2): Some standardization but lengthy or complex structure –High (3): Speedy structuring, easy to navigate and dispersed market expertise 2. Applicability The versatility of each solution for nature projects. –Use cases across sectors and regions –Replication rate –Low (1): Limited to niche sectors/markets –Medium (2): Applicable across a few sectors with some adaptation to local context –High (3): Broad replicability across sectors and regions with feasible adaptation 3. Capital unlock The scale of capital that the solution can unlock at full potential. –Total capital unlock at full potential –Range and depth of investor pools that can be activated –Leverage effect for additional investment –Low (1): Small-scale, niche opportunities; limited opportunity for private/institutional investment –Medium (2): Larger opportunities, but limited investor base –High (3): Significant commercial potential, comparable with segments of global equity or bond markets Category: Nature impact 4. Track record Evidence that past transactions created measurable nature- positive outcomes. –Verified positive impact –Direct or indirect impact –Associated controversies or false claims –Likelihood of accuracy and completeness of available evidence –Low (1): No measurable evidence, anecdotal impact, insufficient deployment time to measure impact, or weak outcomes –Medium (2): Some evidence exists, e.g. in a few regions or sectors, but is incomplete or needs validation –High (3): Verified evidence of positive impact across multiple projects/applications 5. Outcome-based structureDegree to which returns or capital unlock depend on measured nature impact. –Conditions and/or incentives linked to financial payouts –Low (1): Returns are not tied to impact –Medium (2): Some link between use-of- proceeds and project outcomes –High (3): Terms of returns/payments fully depend on impact 6. Nature valuation Extent to which pricing captures the full value of ecosystem services. –Incorporation of natural capital accounting and valuation in pricing –Degree to which payouts are linked to such valuation –Low (1): No explicit valuation or pricing of nature in solution structure –Medium (2): Some valuation, could be indirect or use qualitative criteria –High (3): Comprehensive nature valuation, integrating ecosystem services into market pricing and returns Finance Solutions for Nature: Pathways to Returns and Outcomes 38