Executive summary The landscape of nature finance is growing, but complex. Nature is rapidly emerging as a strategic investment frontier and more institutional capital is flowing into new business models and projects. Yet the underlying complexity remains: nature- related data is fragmented, ecosystem outcomes are hard to price, financial markets are only just starting to embed nature into decision-making frameworks, and the links between climate and nature finance are nascent. This is compounded by varying advice on a growing universe of finance solutions. This report consolidates available guidance into 37 financial solutions to mobilize capital for nature. These include financial instruments, funds and facilities, enabling mechanisms, and fiscal and regulatory measures. Some operate at the scale and familiarity required by institutional investors, while others are still early-stage or need catalytic funding to achieve scale. Ten priority financial solutions can be considered for their ability to deliver nature outcomes – at sufficient scale, with investable returns: 1. Sustainability-linked bonds (SLBs): Commercial bonds tying coupon rates to nature-related targets for corporates or governments. To scale up, SLBs need stronger triggers, clearer metrics and closer alignment between issuers and investors. 2. Thematic (or use-of-proceeds) bonds: Bonds with proceeds earmarked for nature projects. Scaling-up requires clearer guidance and aggregation to improve outcomes for issuers and investors. 3. Sustainability-linked loans (SLLs): Flexible debt, linking interest rates to nature-related targets. SLLs need simpler verification, standardized metrics and stronger triggers to drive nature-positive lending. 4. Thematic (or use-of-proceeds) loans: Loans for specific nature-related projects. Greater clarity on taxonomies and aggregation is needed to enhance capital flows. 5. Impact funds: Funds investing in nature- positive outcomes, often accepting higher risk or longer pathways to returns. Scaling- up requires a stronger pipeline of investable projects and better governance.6. Natural asset companies (NACs): Publicly and privately listed companies that convert the full economic value of nature into financial flows via equity models. NACs hold significant potential but need more transactions for price discovery and replicable investment blueprints. 7. Environmental credits: Tradeable certificates for verified environmental benefits, used in compliance or voluntary markets. Scaling-up needs integrity principles, unified standards and stronger local community engagement. 8. Debt-for-nature swaps (DNS): Mechanisms to restructure sovereign debt in exchange for conservation or restoration commitments, with investable components including bonds and loans. DNS need better governance and standardization, plus an expanded pipeline of eligible debt to deliver conservation funding. 9. Payments for ecosystem services (PES): Contracts rewarding conservation for specific ecosystem services, driven by the public sector. Private sector schemes require longer contracts, aggregation and supply chain integration to scale up. 10. Internal nature pricing (INP): Unexplored, voluntary shadow pricing or fee-based tools to incentivize nature-positive performance in companies or across investment portfolios, similar to internal carbon pricing (ICP). A flexible toolkit that deploys these solutions across contexts is essential to shift markets, as nature finance will not scale up through one “perfect” solution. Moving from a fragmented landscape of transactions to mature global markets will depend on scaling-up the best of both worlds: the familiarity, liquidity and simplicity of general-purpose finance combined with the outcome credibility of nature-specific models that deliver positive results for ecosystems. To get there, five enabling actions are essential: 1. Standardize decision-relevant data for investors: Scaling-up nature finance requires high-integrity, decision-ready metrics. Standard- setters can drive alignment on KPIs and natural capital accounting methods to translate nature’s full value into financial decisions, supported by auditors, data platforms and academic partners. Credit rating agencies can also play a key role in pricing ecosystem risk into creditworthiness. Ten finance solutions can mainstream nature in capital markets. Finance Solutions for Nature: Pathways to Returns and Outcomes 4

Finance Solutions for Nature 2025