This article was originally published on Environmental Finance


“Conservation finance may appear to be one of the most esoteric investment niches, but experimentation and innovation is giving way to proof of concept – attracting a growing number of institutional investors along the way. Mark Nicholls reports.

It’s widely understood that a large gulf exists between the need for funding to protect the world’s vulnerable ecosystems, and the volume of funding that is changing hands. It is also understood that most of this money, to date, has come from public or philanthropic sources, often in the form of grants. What is less well understood is that environmental NGOs, entrepreneurs and financiers are constructing business models, projects and investment vehicles that are combining conservation outcomes with competitive commercial returns, and which are beginning to attract mainstream investors.

“There is a paradigm shift underway in the market,” says Gautier Queru, Paris-based investment director at Mirova, a subsidiary of Natixis Global Asset Management, which is raising a fund aimed at addressing land degradation. “Financial institutions are starting to seize the opportunity that exists in investing in conservation and natural capital.”…”

Read on at: Environmental Finance.