Mobilising Private Finance for Nature
Mobilising Private Finance for Nature: Aligning Measurement and Reporting on Outcomes from Nature Restoration
Building confidence in nature outcomes can unlock more private capital for restoration.
Mobilising greater private finance for nature restoration will depend primarily on stronger demand for the outcomes these projects can generate. However, alignment on approaches to measurement and reporting is essential to build trust, reduce transaction costs and increase investor confidence.
Drawing on interviews, workshops and feedback from a range of investors, this paper examines how financial institutions in the UK are currently measuring state-of-nature and resilience outcomes, identifies the barriers preventing wider adoption and scale, and explores opportunities to build greater market alignment around shared approaches.
This work aims to align with and support existing initiatives shaping shared approaches in market. For example, the Nature Positive Initiative (NPI) led a global consultation to develop consensus-based indicators and metrics for measuring the state of nature. The Taskforce on Nature-related Financial Disclosures (TNFD) and Science Based Targets Network (SBTN) have subsequently incorporated the state-of-nature metrics into LEAP v2.0, the updated TNFD recommendations, and Science-Based Targets for Nature 2.0.
The report identifies four common barriers facing investors and proposes five priority solutions to address them.
Investors are not waiting for perfect information before acting.
Instead, they are seeking greater confidence that outcomes are measured using approaches that are scientifically credible, transparent and fit for purpose. Strengthening this confidence is an important step towards mobilising significantly more private capital for nature restoration.
