Finance Solutions for Nature 2025

2. Strengthen structuring approaches and de-risking mechanisms: Bankable nature transactions must embed nature outcomes into familiar structures, offer clear return pathways and share risk transparently between public and private actors. Multilateral development banks (MDBs) and development finance institutions (DFIs) can expand access to catalytic capital and co-develop scalable blended finance platforms that lower risk, improve deal flow and crowd-in investment. Donors and philanthropies can provide first-loss capital, while institutional investors can help develop replicable transactions. 3. Expand the investment-grade pipeline of nature projects: The pipeline of investable nature projects remains challenging to access. From the supply side, many are early-stage, fragmented and lack development capabilities or investment-grade metrics. At the same time, investor demand remains hesitant due to persistent perceptions of risk. The public sector and non-profits can improve enabling conditions such as tenure, concessions and project preparation support. Accelerators, venture studios and impact funds can help source, de-risk, scale up and aggregate local nature models, especially those overlooked by traditional finance. Identifying and scaling-up hybrid models that align expectations of returns with environmental outcomes could help accelerate investor momentum. 4. Build market demand through an enabling environment: A stable enabling environment to capture the nature-positive economic prize is essential to anchor real-economy action and mobilize private capital. Governments can strengthen long-term commitments on nature through cross-ministerial engagement and economic transition plans that embed GBF-related nature targets on conservation, restoration and fiscal policy. Central banks and supervisors can look to integrate nature into macroprudential frameworks, while MDBs and donors can support capacity building. 5. Shift market norms and incentives to recognize nature’s full value: Long-term investment in nature requires updated market norms. Asset owners and boards should integrate nature and biodiversity into mandates and adopt a “3D lens” – balancing risk, return and impact. Public sector investors and MDBs can embed nature in regional and national accounting systems. Meanwhile, credit rating agencies and asset managers can evolve risk models to reflect nature-related dependencies in corporate and sovereign credit ratings. Finance Solutions for Nature: Pathways to Returns and Outcomes 5