A coalition between the Broadway Initiative, Finance Earth and the Green Finance Institute lays out Roadmap for Financing a UK Nature Recovery to unlock private investment in nature.
LONDON – An alliance of UK environmental and business groups says billions of pounds of private investment is potentially available and urgently needed to reverse the decline in the state of the UK natural environment.
The coalition has produced a roadmap for action, Financing UK Nature Recovery, which is the result of a collaboration between the Broadway Initiative, Finance Earth and the Green Finance Institute.
It describes 2021 as ‘a make-or-break year for nature finance’ and calls on the Government to take decisive action to unlock large-scale private investment in nature recovery across the UK.
Ed Lockhart-Mummery, Convenor of the Broadway Initiative said,
“A strategic plan for financing nature based solutions is urgently needed to meet the commitments to restore our ecosystems set out in the Prime Minister’s ten-point plan for a green industrial revolution and the government’s 25 year environment plan.
Ahead of the COP26 conference taking place in the UK next year, there is a short window of opportunity for the government to take strategic action at home and be able to adopt a leadership position on financing nature-based solutions.”
Financing UK Nature Recovery launched today at the Natural Capital Finance and Investment Conference which is taking place over three days this week. The Conference, now in its third year, is an important online forum designed to encourage cross-sectoral collaboration. It is being attended by at least a thousand experts from across the worlds of finance and environment. The roadmap is designed to ensure the UK is placed at the forefront of this important next frontier for green finance. The roadmap calls for:
- The creation of a Pathfinder Fund to invest in large-scale projects
- New market rules and standards to be established for investing in nature-based projects
- The establishment of a coalition of finance, business and environmental groups to assist the UK Government in placing nature recovery on a sustainable financial footing.
Dr Rhian-Mari Thomas, OBE, Chief Executive, Green Finance Institute said:
“We know we must urgently invest in nature and in nature-based solutions and that to do so will require the collaboration of the finance community, private sector and Government.
“In order to crowd in private investors that are keen to invest in nature, but who are struggling to find projects that meet their requirements, we need to develop a robust pipeline of demonstration projects.
As with the renewable energy sector a decade ago, nature is a nascent asset class and will similarly need policy and funding support in order to attract capital at scale.”
James Mansfield, Co-founder and Managing Director of Finance Earth said:
“The UK needs a coherent strategy and regulatory framework for unlocking investment to deliver meaningful action on the ground.”
“Innovative financing solutions in isolation cannot unlock private investment at the scale required, we need a carefully designed policy and regulatory framework which is built in partnership with practitioners, scientists, regulators and the finance community – this is what this coalition aims to deliver.”
Edward Lockhart-Mummery, Convenor of the Broadway Initiative said:
“The Pathfinder Fund is essential to demonstrate the revenues that can be delivered by investment in nature and reduce the barriers to large scale private investment.”
“Failing to design a coherent framework for nature investment and remove regulatory barriers now will lock in dependence on public funding for the long term.
Business needs certainty to plan and collaborate across sectors, on long term, large scale solutions to improving the natural environment.”
USEFUL LINKS AND CONTACTS
The strategy proposal can be found on the Financing Nature Recovery Website and Homepage along with media contact details or via Twitter @financeuknature.
About the Natural Capital Finance & Investment Conference
Now in its third year the Natural Capital Finance & Investment Conference, brings together UK nature-based projects and green finance to equip the UK to lead the sustainable green recovery. It is a unique forum which brings finance, government and environmental organisations together to catalyse the emerging natural capital finance and investment market in the UK.
The Ecosystems Knowledge Network is a charity initiated by Government to accelerate innovation in local environmental stewardship and shared learning throughout the UK.
It acts as a matchmaker, to connect financiers, farmers and environmental groups interested in collaborative and transformative environmental projects.
The Broadway Initiative brings together all sectors of the economy and society to work together on the frameworks, plans and partnerships needed to meet net-zero emissions and wider environmental goals. Members come from the worlds of business, NGOs, professional bodies, governance, policymaking and academia.
Green Finance Institute
The Green Finance Institute is an independent, commercially focused organisation backed by government and led by bankers, that convenes and leads sectoral coalitions of global experts, that identify and unlock barriers to investment towards impactful, real-economy outcomes, to benefit our environment, society, and business.
Finance Earth (formerly known as Environmental Finance) is the UK’s leading environmental impact investment organisation, offering corporate finance advisory and fund management services across conservation, natural capital and renewable energy. Finance Earth’s team blends practical experience with deep knowledge of innovative financing and natural capital asset management. Finance Earth manages over £50m of blended impact funds; and works domestically and internationally with leading environmental NGOs, government bodies and corporates to create high quality, impact-led, investable solutions.