Nature Finance Impact Hub: Quarterly Update
Welcome to this edition of the quarterly newsletter from the Nature Finance Impact Hub (NFIH). In this edition, we take a look at some of the latest developments from some of the schemes that are looking to accelerate investment readiness. That’s followed by the project spotlight, and some insights on nature finance in the news. As always, please share this newsletter and the NFIH with contacts if you think it will be of interest, and we welcome new users of the Hub.
Giving visibility to projects under development
So far we have collected data from:
93 Projects under development
84 Nature Positive Green Finance Projects
15 Different ecosystem services
27 Countries
The team have been busy adding a new status of projects to the NFIH - those under development. These projects are sourced from grants such as the Natural Environment Investment Readiness Fund Round 1 and 2, and the Investment Ready Nature in Scotland (IRNS). These projects will soon be looking to the market to provide financing for their ambitions.
Adding these projects demonstrates some of the first steps as we look to evolve the NFIH to help advertise projects seeking investment, helping prospective ecosystem service buyers have visibility of the amazing pipeline of emerging projects. Interact with the map below to learn more.
Project Spotlight
This quarter, the team were out and about exploring innovative projects that are focusing on nature finance for adaptation. The Nature Finance Impact Hub team were present at the “Adaptation: It’s in Our Nature” discussing how green finance can be leveraged to help develop natural flood management and other adaptation opportunities.
The team also attended the “Green Finance for AONBs” workshop in London earlier this month, focusing on the crucial role that NGOs and the public sector can play in driving natural capital conservation using green finance mechanisms. There was a strong case made for the importance of peatland and carbon conservation in helping to mitigate the impact of climate change, and help national and global players to reach their environmental targets.
The projects highlighted in this month’s newsletter support the local landscape in managing the impacts of climate change, which may otherwise be detrimental. One such innovative project is the Orchard Close Flood Alleviation project from Anglian Water.
Based in Norwich, the project is delivering climate resilience benefits to the area through its sustainable urban drainage system (SuDS). Receiving over £1.6m in funding, the project is part of a green bond from Anglian Water, making history in 2017 as the first public utility to launch a Sterling Green Bond. The £250m, eight-year bond will mature in August 2025.
New projects added this month
The following projects were featured recently on Twitter. Follow us to see more project highlights and to showcase some of the great work taking place in nature restoration.
💰Project: Pleasant River Headwaters Forest (Conservation Fund)
🌎Location: USA
🌱Ecosystem service: Biodiversity creation
💰Project: Hampshire Avon Phosphate Trading Scheme
🌎Location: Hampshire, UK
🌱Ecosystem service: Water quality
Other project highlights include Quintana Roo Reef Protection (Mexico), Lyme Timber Company Fund (USA), Woodland Nature Credit – Bank of Ireland (Ireland), Woodland Carbon Code (UK), Navajo River Watershed (USA), and Partnerships for Forests (Colombia).
Nature Finance in the News
Over the past few months there has been a surge of green finance-related policy and affairs, signalling a growing commitment to environmental sustainability and nature conservation in both the public and private sector.
The updated Green Finance Strategy was released on the 30th March 2023, presenting a key opportunity to direct public and private funding into critical areas, aligning with the Paris agreement made in 2015 and national net zero targets. Nature was mentioned 213 times within the document.
In March, the UK government unveiled the Nature Recovery Framework, a comprehensive strategy to safeguard and restore natural ecosystems. This framework provides statutory guidance for Local Nature Recovery Strategies, with a particular focus on collaboration amongst stakeholders. It addresses the recent general decline in biodiversity and aims to restore and protect precious habitats through the promotion of sustainable land management practices.
In collaboration with Defra, the BSI launched the Nature Investment Standards Programme. These are intended to serve as a robust framework for assessing the environmental impact and sustainability of investments. By promoting transparency and responsible investment practices, the BSI standards encourage investments that support nature conservation and restoration.
The Green Finance Institute recently released a report featuring a roadmap to unlock private sector finance and mobilise the transition towards more sustainable farming practices. Focusing on the key role of agriculture in nature conservation, the report highlights the need for increased investment in nature-positive farming methods, such as regenerative agriculture and agroforestry.
The TNFD Nature-related Risk and Opportunity Management and Disclosure Framework is a new initiative that addresses the financial risks and opportunities associated with nature-related factors. It provides guidance for organisations to integrate nature considerations into their decision-making processes, enhance transparency, and foster a transition towards a nature-positive economy. The final version will be released in September 2023.
The Nature for Climate Peatland Grant Scheme opened for round 3, open from 20th March to 26th May. The fund aims to restore peatland in the uplands and lowlands of England, with the restoration work focusing on degraded peatlands.
Finally, the Science Based Targets Network has unveiled the first set of corporate science-based targets for nature. These aim to provide corporations with guidelines to align their operations with nature goals. By adopting science-based targets, companies can measure and reduce negative impacts on biodiversity, promote sustainable land use, and enhance their contributions to conservation.
Submit your project
We are constantly looking for new and exciting project data to add to the Hub which will help to develop strong business cases for investors, as well as build confidence for landowners and project developers who are interested in leveraging green finance for nature. If you would like to submit your project to the Hub, please fill out the form on our website here.
Other recent Accelar news:
And finally… the following just shows the pace of change we’re seeing in green finance based nature positive projects, as the market develops alongside them.
