Finance Solutions for Nature 2025

The Kunming-Montreal Global Biodiversity Framework (GBF) reflects broader international goals to realign financial flows towards nature- positive outcomes. Target 19 calls for the mobilization of at least $200 billion per year for biodiversity by 2030, through a mix of domestic, international and private sources.7 Traditional finance will play a critical role The finance sector has a critical role to play in delivering global goals. Progress hinges on the financial system’s ability to recognize and reward investments that protect, restore and sustainably use natural capital. However, translating this to a clear agenda remains a challenge – markets are designed to favour short-term financial gains over long-term growth that weighs ecological and economic goals together. Asset owners and managers in turn struggle to find robust finance solutions with reliable cashflows tied to real environmental outcomes. However, there is a clear economic and financial opportunity. Research shows the nature-positive economy could be worth an additional $10.1 trillion in annual business value in 2030, with at least 60 clear opportunities across every sector of economy.8 Recent estimates suggest that the green economy more broadly accounted for nearly $8 trillion in listed equity market value in 2024 and has outperformed global equities by ~59% since 2008 – underscoring its investment potential.9 Traditional finance is rising to the challenge. New nature-linked investment models – grounded in risk-return-impact frameworks – are gaining traction, supported by a growing ecosystem of ecologists, economists and innovators.10 Institutional investor interest is growing, with new nature-focused funds emerging from venture capital and private equity firms and pilot instruments being tested by corporates and multilateral development banks (MDBs).11,12 Private finance for nature has surged eleven-fold to over $102 billion in the four years leading up to 2024.13 Investors need clear guidance to navigate a shifting landscape Investors face difficulties navigating the evolving investment landscape for nature. This is understandable, but investors are not monolithic – their objectives, constraints and mandates vary considerably. While some seek nature-aligned products with scalable, risk-adjusted returns, others are constrained by fiduciary interpretations, data gaps and mandates. Persistent perceptions of risk and ecosystem fragmentation continue to limit capital flows into nature-linked opportunities, particularly in emerging markets.14 Meanwhile, unfamiliar instruments that require bespoke structuring struggle for mainstream uptake against familiar tools such as loans, bonds and equity. This report helps address the knowledge gap. Chapter 1 consolidates available guidance on the evolving landscape and prioritizes 10 finance solutions for nature that can deliver returns, nature- positive outcomes and unlock capital at scale. Chapter 2 explores each solution in detail, outlining their investment and impact objectives, pathways to mainstreaming and case examples. However, financial innovation alone will not unlock the full potential of these solutions. The right enabling conditions – achieved through public-private collaboration and including credible metrics, bankable structures, appropriate de- risking measures and institutional alignment – can spur demand for nature finance and incentivize action across the economy. Chapter 3 provides a broad set of actors with key recommendations that can develop the institutional infrastructure for nature finance. This report is an important step, but not the final word. Many of the finance solutions featured are nascent, with limited data on real-world performance. While this report prioritizes solutions based on design features and expert insight, a key next step is empirical validation – tracking financial flows and nature outcomes over time using consistent, comparable metrics. Future research must build a stronger evidence base to assess which solutions deliver the greatest impact and value, moving from promising models to proven strategies that can shape mainstream investment. Private finance for nature has surged eleven-fold to over $102 billion in the four years leading up to 2024. Finance Solutions for Nature: Pathways to Returns and Outcomes 7