# Solution Definition Scalability Nature impact Funds and facilities 18 Impact funds Capital pools dedicated to achieving environmental or social outcomes, often accepting higher risk or concessionary returns; may follow private equity or venture capital fund structures or use blended finance. High; global impact investing AUM in 2024 reached $1.6 trillion, with nature-focused funds < 10% but growing rapidly; flexible fund size up to $1 billion; key to support diverse sectors and project types with tailored financing. High; typically mandated to deliver outcomes with robust metrics, though not linked to natural capital accounting; generally positive track record. 19 Thematic funds Capital pools generated from investors or a single corporate, targeting both nature impact and returns.Medium; funds can attract institutional investors, but require alignment on investment objectives.Medium; impact measurement can be strong, but outcomes are generally not built into targets and track record is mixed. 20 Venture capital (or early-stage investment)Private placements in early-stage businesses, could focus on nature-positive business models, e.g. regenerative agriculture, sustainable forestry, MRV technology.Medium; tends to favour developed capital markets.Medium; impact measurement varies and track record favours tech-based investments over models with direct impact. 21 Commercial funds Pools of capital from various investors allocated for a specific project or purpose; may, by discretion, be used for nature projects.High; broad market acceptance. Low; priority is financial returns. 22 Corporate funds Investment vehicle established by a corporate to support direct funding of nature projects or to finance nature-positive business models. Medium; corporations can create SPVs to support sustainability goals, but scale depends on leadership commitment.Medium; varies widely on fund structure and track record is hard to ascertain. 23 Crowdfunding Collecting money from a large number of small-ticket investors; can be both equity-based or donor-driven. Low; but growing relevance for nature-based models, including early-stage startups in tech- based MRV and community reforestation. Low; as project quality and impact measurement vary significantly. Enabling mechanisms 24 Green securitization Pooling of financial products, into a sellable product, with proceeds directed towards nature projects.Medium; while it makes other solutions scalable, most transactions need complex structuring and regulatory frameworks. Indirect; depends on the quality of the underlying assets. 25 Risk insurance Insurance covering environmental liabilities or reducing financial risks from ecological collapse; premiums can be tied to nature-positive outcomes; includes parametric insurance. Low; as individual structures are complex and limited demand outside specialized risk areas; however, transactions are growing.High; outcome-based structure incentivizes nature-positive activities, particularly relevant for coastal conservation and restoration. 26 Credit guarantees Third-party guarantees reducing lender risk by ensuring loan repayment in case of default; include first loss capital as credit enhancement in blended structures. Medium; depend on financial institutions’ backing for relevant projects; stronger when combined with priority solutions.Medium; outcome-based structure and valuation depends heavily on the paired solution. 27 Internal nature pricing (INP)Voluntary tool for corporates and institutional investors to assign a shadow price or internal fee to their negative impact on nature; analogous to internal carbon pricing (ICP).Medium; no active schemes and complex to structure, but track record of ICP and growing nature-related reporting indicate a strong base of companies and investors. Medium; places a financial value on externalities, allowing corporates and investors to generate funds for natural capital, but pricing guidance is lacking. TABLE A2 Finance solutions for nature (continued) Finance Solutions for Nature: Pathways to Returns and Outcomes 41

Finance Solutions for Nature 2025