Nature Investments:
Drivers and Needs
Climate Mitigation Market
$550 Billion/Year Projected Market
$120 Billion/Year Current Spending Estimate
High-impact Investments led by science are the
need of the hour.
1Billion
hectares (Ha) of land committed by countries across the world for climate, biodiversity and nature targets
Nature is not just a resource—it is the
backbone of the global economy.
Approximately $44 trillion—or 55% of
global GDP—depends directly on
nature and its services.
The green economy is growing fast, with markets like carbon credits, sustainable forestry, and regenerative farming offering lucrative investment avenues.
1 Million
species threatened with extinction, at a rate 1,000 to 10,000 times higher than natural rates
40%
loss in annual returns in global real estate sector by 2030 in the absence of climate action
35%
of the world’s wetlands lost between 1970 to 2015, with the annual rates of loss accelerating
Loss of Habitats and Collapse of Natural Ecosystems poses the largest risk to Business Value Chains.
Nature-based Solutions are driving Nature Investments
From clean water and healthy soils, to pollination and carbon sequestration, nature’s ecosystem services are the basis for achieving food, energy and water security while protecting biodiversity and reducing disaster risk. New mechanisms for protecting such natural assets are emerging in the form of Nature-based Solutions (NbS). NbS are actions that protect, restore, and safeguard ecosystems while benefitting people and environment alike. These solutions that include reforestation, wetland restoration, and sustainable agriculture, deliver a range of ecosystem services and address climate change, biodiversity loss and food security.
The International Union for Conservation of Nature (IUCN) and European Union (EU) have long championed NbS for their ability to drive economic growth, enhance business resilience, deliver social and environmental benefits and secure long-term financial returns.
UNEP estimates that an average of over $500 billion annual investment is needed in Nature-based Solutions, between 2022 and 2050, across various areas such as reforestation, peatland restoration, agroforestry, cover crops etc., to limit global warming to 1.5° in line with the Paris Agreement. These investments would also generate quantifiable financial returns through carbon credits, payment for ecosystem services, sustainable agriculture, and ecotourism. Companies and investors that prioritize nature-based solutions will be better positioned to navigate a rapidly changing world, ensuring profitability while making a positive impact on people and the planet.
Agriculture supports
1.23 billion jobs globally and contributes nearly
$4 trillion in gross value added
Examples of Nature-based Solutions
Integrating environmental considerations into financial investments can protect critical ecosystems, enrich biodiversity, enhance resilience, diversify assets, and potentially increase returns.
Integrating environmental considerations into financial investments can protect critical ecosystems, enrich biodiversity, enhance resilience, diversify assets, and potentially increase returns.
Afforestation,
Reforestation, and
Revegetation (ARR)
Afforestation,
Reforestation, and
Revegetation
Integrating environmental considerations into financial investments can protect critical ecosystems, enrich biodiversity, enhance resilience, diversify assets, and potentially increase returns.
Agriculture Land
Management (ALM)
Integrating environmental considerations into financial investments can protect critical ecosystems, enrich biodiversity, enhance resilience, diversify assets, and potentially increase returns.
Mangrove/ Wetland
Restoration
Strategic Advantages of Nature Investments
De-risking portfolios
Nature based investments reduce business risks from climate impacts and create a new asset class that reduces the overall risk exposure of an investment portfolio.
An investment in Mangroves for example, reduces the loss and damage from storms in certain geographies.
Generating new financial flows
Carbon and other emerging market mechanisms are providing new revenue streams for businesses.
Investment in new plantations by a corporation for example, would lead to new revenue flows for decades.
Regulatory alignment
Governments, corporations, and investors increasingly recognize the importance of investing in nature. New nature related disclosures that require ESG related reporting from companies and investors are driving natture investments.
Examples of compliance with emerging frameworks include Taskforce on Nature-Related Financial Disclosures (TNFD), Kunming-Montreal Global Biodiversity Framework, European Union Taxonomy Regulation, etc.
