Nature- and biodiversity-positive investments are financial commitments that aim to protect, restore, or enhance natural ecosystems while generating measurable ecological and social benefits.
These investments support initiatives such as sustainable agriculture, forest conservation, ecosystem restoration, renewable energy, and biodiversity-friendly infrastructure. The underlying principle is that capital allocation can drive environmental outcomes, creating a synergy between financial returns and ecological stewardship.
Who is investing?
A wide range of public and private investors are putting money into nature-positive investments, to protect ecosystems alongside generating financial returns. Some investors are:
- Institutional investors, such as pension funds or finantial institutions, are integrating nature-positive approaches into their investment strategies.
- Organizations such as the UNDP’s Nature Investment Facility or Nature Action 100, bringing together global investors from both private and public sectors.
- Advocacy groups, frameworks and coalitions such as Finance for Biodiversity Foundation, to prioritize and scale nature-positive finance.
Investment Types
Nature-positive investments span across multiple sectors, instruments, and impact levels, and can be categorized in practical ways, depending on the type of action. Some investments support protection – preventing further damage of nature such as avoided deforestation or establishment of protected areas.
Others aim at restoring degraded ecosystems, including reforestation, wetland restoration, coral reef recovery, and soil regeneration. Some investments enable sustainable use by supporting ongoing economic activities while maintaining ecosystem health – for example, sustainable agriculture, fisheries, water management.
Investment instruments, or how capital is deployed, include:
- Equity investments (ownership stakes) in projects or companies with nature-positive business models.
- Debt instruments – such as loans and bonds at various interest terms.
- Blended finance combining public, philanthropic and private capital to reduce risks.
- Payment for ecosystem services, biodiversity cretids, or conservation outcomes-based finance.
Initiatives and Financial Returns
Sustainable Agriculture & Food Systems
Investments supporting farming practices that protect soils, water, and biodiversity while maintaining productivity. For example, regenerative agriculture, agroforestry, organic farming, sustainable livestock management. Returns come from food production, premium markets, and more resilient yields over time.
Forestry & Land Use
Nature-positive forestry focuses on protecting and restoring forests, not just extracting timber. This includes sustainable forest management, reforestation and afforestation with native species, avoided deforestation projects, and conservation forestry. Revenue can come from timber (harvested sustainably), ecosystem services, or long-term land value appreciation.
Ecosystem Restoration & Conservation
These investments fund the restoration of degraded ecosystems such as wetlands, mangroves, grasslands, coral reefs, and rivers. Financial returns may be generated through conservation finance mechanisms, tourism, resilience benefits (like flood protection), or payments for ecosystem services.
Water & Natural Infrastructure
These investments aim to protect watersheds and improve water quality and availability. Examples include wetland restoration for flood control, natural water filtration systems, sustainable irrigation, and river basin management. These projects often replace or complement traditional “grey” infrastructure.
Biodiversity-Inclusive Infrastructure
Some infrastructure projects are designed to minimize harm to ecosystems and actively support biodiversity. This includes wildlife corridors, green urban infrastructure (parks, green roofs), and transportation projects that reduce habitat fragmentation. These investments often align with long-term urban resilience goals.
Nature-Based Solutions for Climate
Nature-positive investments often overlap with climate action through nature-based solutions. Examples include mangroves for coastal protection, peatland restoration for carbon storage, and forest landscapes that provide both climate mitigation and biodiversity benefits.
Marine & Coastal Investments
In oceans and coastal areas, nature-positive investments support sustainable fisheries, marine protected areas, coral reef restoration, and coastal ecosystem protection. Returns can come from sustainable seafood markets, tourism, or improved fish stocks over time.
The Environment Consultant 