South Pole’s latest report, developed together with WWF, highlights which success factors are key to design nature-based solutions projects that can attract critical private capital.
Nature-based solutions (NbS) are essential to addressing climate change, biodiversity loss, and human development and wellbeing. Investing in nature will deliver huge benefits including increased resilience to extreme climate shocks, greater economic development, improved health and greater food and water security.
South Pole and WWF's new report aims to identify examples of bankable deals and analyse the underlying common success factors that have helped secure commercial investments.
This report was developed by South Pole together with WWF, as part of the Climate Solutions Partnership, a collaboration between HSBC, World Resources Institute and WWF.
Nature-based solutions (NbS) are essential to addressing climate change, biodiversity loss, and human development and wellbeing. Investing in nature will deliver huge benefits including increased resilience to extreme climate shocks, greater economic development, improved health and greater food and water security.
South Pole and WWF's new report aims to identify examples of bankable deals and analyse the underlying common success factors that have helped secure commercial investments.
This report was developed by South Pole together with WWF, as part of the Climate Solutions Partnership, a collaboration between HSBC, World Resources Institute and WWF.
We know NbS need additional financing - especially from private investors - at scale. That is why it is becoming crucial to identify proven solutions that are already achieving positive biodiversity and wellbeing outcomes and financial returns in order to build a robust pipeline of NbS investments.
This report is grounded in a summary of analysis of five successful projects, initiatives and instruments that currently drive finance into NbS. From a forest resilience bond in California to mangrove restoration and coastal green belt protection in Indonesia, you can download and view all of these inspiring initiatives.
The social enterprise Blue finance manages five bankable MPAs globally on behalf of Governments. As part of the solution, Blue finance structures blended finance facilities that bring together grants and debt to fund the early-stage investments of the MPAs. The revenues generated from a range of sustainable sources, such as eco-tourism fees and sustainable fisheries, can create tangible returns for investors, while ensuring the financial sustainability of the MPAs. Image Credit: Blue finance
The Café Selva Norte is working towards the sustainable development of the coffee value chain in Peru. It invests in forest protection and restoration activities, supports coffee cooperatives and their smallholder producers by providing micro-credit and technical assistance, and invests equity in a processing plant to improve infrastructure and ensure sustainable and efficient production processes. The project generates revenue from coffee and timber sales, the processing plant's services and carbon credits. Image Credit: Café Selva Norte
The Forest Resilience Bond (FRB) is a public-private partnership that enables private capital to finance forest restoration activities that reduce fire risk and deliver environmental and social co-benefits. The activities focus on the strategic removal of excess vegetation, land regeneration and protection, and fuels treatments – including thinning, prescribed burning and pruning. Beneficiaries of the restoration work, such as the US Forest Service, water and electric utilities, and governmental agencies, make contracted annual payments to provide investors with competitive returns. The FRB is piloted on a 5,890 ha area in the Yuba River Watershed (California). Image Credit: Forest Resilience Bond (FRB)
The project is implemented by NGO Vi Agroforestry, in cooperation with the Livelihoods Carbon Fund and Brookside Dairy Limited in the Mount Elgon region of Kenya. It aims to preserve biodiversity and water resources, as well as boost the local economy. The project seeks to promote sustainable agriculture land management (SALM) practices and improved livestock husbandry practices, increasing food and the income benefits for the local population. Image Credit: Unsplash
The Livelihoods-Yagasu project aims to restore and protect mangroves, recreating a healthy ecosystem and promoting income-generating activities. Having started with mangrove restoration, the project extended its scope to build a coastal “greenbelt corridor” which combines mangroves with forests and fruit trees along the Indonesian coastline. Yagasu operates in two provinces in Sumatra and works hand in hand with local communities to protect local ecosystems and develop additional livelihoods, with a focus on the economic development of vulnerable groups, women and youth. It receives investment for carbon delivery from a range of impact and commercial investors. Image Credit: Unsplash
Bankability is all about scaling the nature-based solutions that will support a climate-safe and nature-positive world, with huge benefits to people. We hope investors and project developers learn from those common success factors to dramatically expand nature-based solutions right across the world.
David Donnelly, Senior Adviser - Finance for Nature-based Solutions at WWF-UK, WWF-UK
Nature-based solutions are here and private money is moving – which is good news for everyone: latest research shows that the global economy is better off with more nature protected.
Attractive investment cases for nature-based solutions are key to unlocking the growing interest among private capital to meet demands for nature conservation.
