In line with the Green Finance Institute’s broader vision of a greener future made possible by finance, GFI Hive’s mission is to increase private investment in nature restoration, nature-based solutions and nature-positive outcomes in and for the UK.
We work with the finance sector, government, academia, environmental NGOs and land managers to identify and unlock barriers to this mission.
An estimated £44 billion to £97 billion in additional financing is needed to achieve the UK’s key nature goals by 2030. Globally this gap is estimated to be over $8 trillion by 2050.
To fill this gap, private finance will be required in addition to public finance. However, for private finance to be mobilised, there are four over-arching requirements the Institute has identified.
There is a lack of confidence among buyers, sellers and intermediaries – including investors – due to a lack of agreed-on definitions of Do No Significant Harm (DNSH) and Nature-Positive. The UK Green Taxonomy will seek to developed DNSH, but more standards are required to ensure interventions invested in will deliver the nature-positive benefits intended.
As yet, there are few high-integrity nature-based projects that provide attractive risk-adjusted returns, or that could repay finance without some form of public or philanthropic funding support.
While a pipeline is growing in the UK, growth is slowed by a lack of shared knowledge. Projects also remain too small to attract large investors.
Financial sector interest in nature is growing, but there are few examples of private investment and shared knowledge is lacking.
While companies are beginning to understand that they are exposed to nature-based risks and therefore will need to transition their business models and supply chains to be nature-positive – including becoming buyers of ecosystem services – there is limited evidence of the economic case (nature-related risks through impacts and dependencies), or the understanding of how to make that transition and of the investment it may require.
In addition to knowledge sharing and appropriate financial mechanisms, supportive policy and regulation, in addition to oversight and capacity development are required to ensure demand and supply increase and successfully match.
What we do at GFI Hive
In order to respond to the above challenges, GFI Hive:
- Acts as a knowledge sharing hub for private investment and finance for nature and nature-based solutions;
- Identifies barriers and co-designs solutions to private investment in nature working with the finance sector in addition to government, business and environmental stakeholders; and
- Supports the work of stakeholders with similar aims including identifying private investment opportunities.
In addition to our nature and finance work at GFI Hive, the Green Finance Institute hosts the Secretariat for the Taskforce on Nature-related Financial Disclosures with support from UNEP and UNDP, and is an adviser and assessor for the Natural Environment Investment Readiness Fund.
GFI Hive is a collaborative platform funded by philanthropic donors and government and we invite you to connect with us using the email below and by subscribing to our monthly newsletter.