Introduction

The world faces pressing challenges due to biodiversity loss and climate change. These issues threaten ecosystems, livelihoods, and economic stability. Despite international commitments, such as the Sustainable Development Goals (SDGs), there remains a significant investment gap—approximately US$2.5 trillion annually. Of the estimated US$300–400 billion needed for ecosystem preservation and restoration, only US$52 billion is currently being invested.

To bridge this gap, the Bankable Nature Solutions (BNS) approach has been introduced, integrating conservation with financial sustainability. BNS projects generate financial returns while contributing to biodiversity protection and climate mitigation. The WWF Bankable Nature Solutions practice supports these initiatives by collaborating with financial institutions, corporations, and local stakeholders.

Setting the scene

Biodiversity and climate change are interconnected challenges, disproportionately affecting vulnerable communities. Key drivers include deforestation, unsustainable agriculture, mining, and pollution. Traditional conservation funding, relying on governments and philanthropy, is insufficient. The private sector is seen as a potential solution, with investment structures designed to generate both environmental and financial returns.

BNS projects must meet two key criteria:

• Environmental impact – leading to biodiversity gains or climate mitigation/adaptation.
• Financial viability – generating revenues through cashflow, asset value, or cost savings, making them attractive to investors.

These projects can be funded through equity, debt, or blended finance, which combines public and private investments to reduce risk and attract commercial capital.

Investment themes

BNS projects are applied across multiple sectors, including:

• Climate-smart agriculture – increasing food security and reducing environmental impact through sustainable farming techniques.
• Environmental protection – restoring wetlands, peatlands, and forests to enhance resilience and ecosystem services.
• Forestry – managing forests sustainably through afforestation, reforestation, and sustainable timber harvesting.
• Water and sanitation – improving water management and sanitation infrastructure while integrating conservation.
• Renewable energy and efficiency – promoting sustainable energy production and cleaner industrial methods.

Each sector provides opportunities for revenue generation while supporting conservation efforts.

Risks and safeguards

Despite the potential of BNS, there are risks, such as social displacement, environmental degradation, and financial uncertainty. Safeguards must be integrated to ensure that projects maintain their intended benefits. These safeguards involve:

• Stakeholder engagement to secure Free, Prior, and Informed Consent (FPIC).
• Environmental and social frameworks to monitor impact.
• Financial risk management, including insurance and blended finance structures.
• Financial institutions also require rigorous environmental and social governance (ESG) compliance before investing in BNS projects.

Blueprints

The report provides several financing blueprints for structuring BNS projects, including:

• Direct private investment – Investors fund a BNS entity directly through debt or equity.
• Blended finance – Public grants or concessional loans reduce risks, making projects more attractive for private investors.
• Carbon finance – Revenues are generated from carbon credit sales.
• Pooled investment funds – Multiple projects are bundled into a diversified investment fund, reducing risks and transaction costs.

Each blueprint illustrates a potential approach to structuring BNS projects, depending on sector and financial needs.

Selected case studies

The report highlights 13 global case studies demonstrating the implementation of BNS across different landscapes. These cases showcase diverse investment themes, financial instruments, and geographies. Notable examples include:

• Büyük Menderes River Basin (Turkey) – Supporting textile manufacturers in adopting cleaner production methods, reducing water pollution, and improving efficiency.
• Livelihoods Mount Elgon (Kenya) – Implementing sustainable dairy farming practices to enhance productivity, protect soil, and sequester carbon.
• Royal Lestari Utama (Indonesia) – A sustainable rubber plantation balancing production with conservation.
• As-Samra Wastewater Treatment Plant (Jordan) – Treating wastewater to improve water quality and support agriculture.
• Ingoldisthorpe Wetland (UK) – Using natural wetlands to filter wastewater, reducing chemical and energy costs.
• Fairventures Social Forestry (Indonesia) – A community-based agroforestry project restoring degraded land.
• Kenya Pooled Water Fund – Raising private capital for water infrastructure projects through bond issuances.

Each project highlights financial models, revenue streams, and environmental benefits, demonstrating the feasibility of BNS initiatives.

Key take-aways

• Financial returns must be clearly defined – Projects must generate income through savings, product sales, or service fees.
• Long development timelines require patience – Securing investment and building capacity takes time.
• A structured investment vehicle is crucial – Investors require a clear entity to direct funds.
• Different investors require different data – Grants focus on impact, while investors prioritise financial viability.
• A diverse skill set is essential – Combining financial, technical, and leadership expertise increases project success.
• Blended finance can bridge gaps – Public funding can de-risk projects and attract private investment.
• Not all aspects of conservation are bankable – Supporting activities (e.g., technical assistance) should be funded separately.
• Stakeholder engagement is critical – Local communities and policymakers must be involved.
• Adopting a landscape approach enhances impact – Projects should integrate with broader conservation strategies.

Getting started with Bankable Nature Solutions

To develop a BNS project, a structured four-phase approach is recommended:

• Discovery – Identify opportunities based on landscape characteristics, local needs, and market demand.
• Structuring – Define the business model, financial plan, and stakeholder engagement strategy.
• Project development – Secure land, refine financial structures, and validate impact.
• Funding – Attract investors and finalize agreements.

WWF and its partners offer technical support and financial expertise to guide projects through these phases.

Conclusion

Bankable Nature Solutions offer a scalable approach to conservation financing, aligning environmental and economic benefits. By integrating investment strategies with nature-based solutions, these projects can drive significant positive impacts while ensuring financial sustainability.