About
As we develop scenarios and pathways for nature recovery, how can they be sufficiently resourced? Providing sufficient financial resources and prioritisation is among the greatest challenges facing nature recovery. The challenge of obtaining capital investment from funders and investors to projects and programmes that deliver measurable nature recovery outcomes at the scale and pace required, and yet also incorporate adequate consideration of social safeguards, is far from being solved. At the same time, allocating monetary values to nature and profiting from nature can raise philosophical, cultural and moral questions.
We will draw on our expertise in finance to systematically conceptualise, pilot, assess, and then scale a flexible architecture for funding nature recovery outcomes. Critically, this architecture will be designed to be financeable, investable, and insurable. We will work closely with finance researchers and practitioners to understand the requirements of financial institutions so that capital can be mobilised to enhance nature recovery at the scale and pace required.
Complementary projects
In addition to our core work, we will also undertake three complementary projects that will draw on expertise and work being undertaken in the other themes, particularly in Scale and Integration. These include:
- Reducing information asymmetries – we will design and pilot technologies and tools that are able to reduce information asymmetries between providers of capital seeking investment opportunities and nature recovery projects and programmes. Originating investable projects and programmes efficiently is a major impediment to scaling nature recovery financing at scale.
- Optimising public and philanthropic funding – we will develop approaches for assessing how to optimise the use of public and philanthropic funding to leverage private funding and finance into nature recovery. The effective optimisation of finite public and philanthropic funds will allow these resources to go further across different sub-national, national, and regional scales.
- Nature recovery-linked finance – we will create metrics that could underpin new sustainability-linked loans and bonds for nature recovery. Sustainability-linked instruments are new and experiencing rapid growth. Vital to their success are appropriately designed key performance indicators and incentive structures and we will design these for nature recovery outcomes, working with major financial institutions as we do so.
Related News Articles
How do perceptions of risk shape nature finance?
Caitlin Hafferty, Postdoctoral Researcher in the Centre, has recently been awarded an Oxford Policy Engagement Network (OPEN) Fellowship to conduct a project on understanding the impact of risk and uncertainty on high-integrity nature markets in the UK.
New Podcast with EJ Milner-Gulland
Reflections on the Reimagining Nature Finance workshop
A blog on the importance of relationships in redesigning economic and financial systems that are in service of life
Reimagining Nature Finance
“We invited nature to the meeting, but as thunder rolled and lightning cracked, it became undeniable where power actually resided.”
Our response to Defra’s consultation on improving the implementation of Biodiversity Net Gain for minor, medium and brownfield development
We raise concerns about the effect that the proposed changes will have on the demand for units on the off-site BNG market, based on research into the outcomes of the off-site market, & highlight the potential for worsening ecological outcomes from the changes proposed to the Small Sites Metric.
Related Projects
Healthy Ecosystem Restoration in Oxfordshire
Developing the local Oxfordshire landscape as a case-study, nature-recovery laboratory and community of practice.
Governing sustainable finance for effective and equitable nature recovery
Developing a typology of financing models for nature recovery and assessing how different modalities of finance shape dynamics of equity, collaboration and conflict in nature recovery.
Financing local nature recovery in Oxfordshire
Understanding the scale of the opportunity to fund nature recovery with offsite Biodiversity Net Gain (BNG) payments.
Combinatorial auction for turtle dove habitat
Using reverse auctions to maximise cost effectiveness of habitat creation project.
Robust ESG data for biodiversity
Financial institutions are increasingly aware of and interested in biodiversity- and nature- risks and opportunities, but such attempts have often been hindered by incomplete, incomparable and unreliable environment, social and governance (ESG) disclosure and scores.
Reimagining Nature Finance
Designing finance in service of the living world
The Fiscal Implications of Compound Climate
Nature-related and Macro-financial Risks
Blended finance for nature recovery
Rethinking investment in England’s natural environment
Mobilise capital for Nature Recovery
Barriers to mobilising finance for nature projects and evaluation of nature market architecture
Designing effective Nature Restoration Funds in theory and practice
Collating the evidence from theory and nature restoration funds around the world to inform the next generation of conservation compensation funds
Related Outputs
Net zero v No Net Loss: Why carbon markets aren’t a good model for investing in nature recovery
Finance Theme Lead Alex Teytelboym, recently took part in a webinar analyzing approaches to scaling investment in nature recovery. At a time of urgent need for private finance to pick up the heavy lifting in nature recovery, Alex discussed why existing market designs such as carbon and Biodiversity Net Gain are not sufficient to scale […]
The UK nature finance ecosystem: status and opportunities for scale
This report reviews the current state of nature finance in the UK, the ecosystem of actors involved and the enabling environment to scale finance, including the role of blended finance. The report acts as a primer to inform future research toward policy recommendations.
Designing for Life: reimagining Nature Finance
This essay is an invitation to dare to dream of a different future. A future where nature is recovering, where life is pulsing through our oceans, rivers and forests, and where communities thrive in relationship with each other and the rest of the living world.
Response to the consultation from the Department for Energy Security and Net Zero on the implementation of the UK government’s principles for voluntary carbon and nature market integrity
Comments from the Leverhulme Centre for Nature Recovery
