Nature Finance Focus 2025: What Investors Need to Know
Pollination’s Nature Finance Focus 2025 report shows how global capital markets are beginning to finance nature at scale. The message is clear: nature underpins much of the world economy, yet funding its protection and recovery still lags. According to the report, half of global GDP — some US$44 trillion — is dependent on natural systems, and up to US$440 billion a year is needed to halt biodiversity loss, the gap is too large to ignore. (1)
What the Report Covers
The report maps where capital is already flowing and where scalable investment models are emerging. Importantly, it defines nature finance not only as conservation, but also as transition and enabling finance. That means supporting industries to reduce their nature impact, backing innovations that enable better management of natural capital, and funding solutions that restore ecosystems.
Key Findings
The 2025 report highlights several categories where private capital is gaining traction:
Nature-linked corporate debt – sustainability-linked bonds and loans now include biodiversity and water targets, with biodiversity featuring in 16% of issuances in 2023, up from 5% in 2020.
Transition finance for supply chains – major food, textile and agricultural companies are partnering with financiers to help suppliers adopt regenerative practices, often using blended models that combine concessional and commercial finance.
Natural capital real asset funds – managers are creating funds in agriculture and forestry with explicit environmental objectives, targeting outcomes such as soil health, biodiversity restoration and improved water management.
Environmental crediting – carbon and biodiversity credits remain controversial but continue to dominate flows. In 2024, US$8.8 billion went into nature-based carbon credits, making them one of the most established pathways for finance.
Natural and hybrid infrastructure – wetlands, mangroves and urban green solutions are proving cheaper and more resilient than grey infrastructure, offering utilities and governments clear business cases.
Conservation bonds and debt swaps – sovereign issuances and NGO-led models are mobilising large-scale funds for biodiversity, particularly in emerging markets.
Equity in nature tech – venture and growth finance is expanding into monitoring tools, biodiversity platforms and regenerative agriculture technologies. VC investment in the space reached US$2.1 billion in 2024.
Alongside these models, Pollination’s investor survey shows a striking shift in sentiment. Of 500 institutional investors surveyed across the UK, USA, Australia, Singapore and Japan:
99% intend to increase nature-related investments, up from 68% in 2023.
43% now cite financial returns as their primary driver, a sharp change from 2023 when risk mitigation dominated.
Barriers have shifted from lack of interest to lack of pipeline, capability and consistent returns, This is a sign of a market maturing.
Investor Takeaways
Several clear themes emerge for investors:
Nature finance is entering the mainstream. Debt markets, private equity, real assets and venture capital are now actively engaged. This is no longer a space limited to philanthropy and government grants.
Scale comes from transition. The biggest investment opportunities are in transitioning existing assets and supply chains to more nature-positive models. These strategies are attractive because they align with clear cost savings and resilience benefits.
Returns are driving appetite. Investors are moving beyond risk management. The pursuit of financial opportunity is now the main motivator, bringing with it larger capital commitments.
Integrity matters. Growth in environmental crediting and sustainability-linked finance must be underpinned by robust governance and credible metrics. Weak standards risk undermining trust.
Innovation is accelerating. Natural capital funds, hybrid infrastructure, biodiversity credits and nature tech are developing quickly. Early adopters may benefit from first-mover advantages as standards and markets mature.
The Bottom Line
Nature Finance Focus 2025 makes clear that capital markets are turning toward nature with growing conviction. Opportunities span debt, supply chains, infrastructure, credits and technology. For investors, this represents both a financial opportunity and a role in solving a global challenge. Execution is the hurdle — sourcing credible projects, scaling investment models, and navigating governance frameworks. Those who succeed will help close the biodiversity financing gap while building resilience and long-term value in the global economy.
References
Z Whitton, M Cerecina, K Rayson, C Austen, G Murray. Pollination, “Nature Finance Focus 2025.” June 2025 https://pollinationgroup.com/nature-finance-focus/
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