Introduction

The rapid deployment of nature transition technologies – products, systems and business models that reduce business impacts on nature – would simultaneously drive economic growth, investment, and the delivery of environmental goals, just as the deployment of climate technologies has driven a thriving net zero economy.

These solutions can deliver value for government, businesses and investors alike:

  • For government: Support economic growth, innovation, investment, exports and the delivery of nature and environmental targets.
  • For businesses: Reduce operating costs, improve resilience, increase efficiency and unlock new market opportunities.
  • For investors: Offer access to growing markets with strong demand, scalable business models and significant commercial potential.

The Challenge

Yet in both a UK and global context, persistent barriers prevent these technologies from accessing finance and reaching commercialisation and scale-up:

  • Absence of patient, mid-stage capital for companies progressing from pilot projects to commercial deployment
  • Lack of specialist expertise capable of assessing emerging technologies and leading investment rounds
  • Lengthy data-gathering and validation requirements, often taking years to generate the performance evidence required by offtakers, regulators and investors
  • Uncertain or inconsistent policy and regulatory signals reducing confidence in future demand, limiting investment into technologies where commercial viability depends partly on regulatory drivers

 

The Opportunity

A selection of solutions are being explored as part of GFI’s Nature Transition Technology programme. Further details on these solutions can be found in the below report.

  • Create a concessional capital fund that has a mandate to lead and price a round, to support first‑of‑a‑kind infrastructure and scale‑up projects
  • Develop financing mechanisms to help scale investment in nature transition tech (e.g. milestone-based convertible or revenue-linked instruments – debt or equity)
  • Pair capital with formal technical diligence panels and/or upskill investors with technical capacity
  • Extend the Regulatory Innovation Office’s mandate to include nature transition tech and fast track UK regulatory approvals and permitting

GFI's work on Transition Technologies

Aligned with its core mission of shaping how finance can facilitate a real-economy transition, the GFI is working to address these barriers and unlock greater private investment into nature transition technologies in the UK and globally. This work applies GFI’s proven Transactions to Transitions model, creating the enabling environment, market infrastructure and financial solutions needed to bridge the gap between innovative technologies and investor requirements.

The below report identifies the key barriers facing three priority technologies and outlines targeted actions that could help overcome them.

Based on this scoping work, GFI is developing a programme to refine and implement these solutions. The programme will place particular emphasis on addressing mid-stage financing gaps and supporting the scale-up of commercially viable technologies across the UK, while also helping businesses access growth opportunities in international markets.

We welcome feedback on these proposed solutions, how they can be best implemented, and additional action needed in the market. Please get in touch if you would like to be part of this work.