Earth Security’s CEO chaired a panel of banks and investors at Environmental Finance’s Natural Capital Investment Conference 2021, which explored investment strategies, the market gaps and opportunities to grow a global pipeline of nature-based investments.
A growing interest of investors in nature-based solutions is driving dozens of innovative financial transactions, but these are niche, require a great time and effort to develop, and their volume and size is held back by a trickling global pipeline of bankable projects.
The panel explored a spectrum of investment options: From direct investments in regenerative agriculture; to sovereign nature bonds; listed equity funds; and, ultimately, the urgent need to rethink 'blended finance' partnerships to deliver at scale.
Speakers included:
- Alejandro Litovsky, CEO & Founder of Earth Security (Chair)
- Alina Donets, Portfolio Manager, Lombard Odier Group.
- Matthew McLuckie, Managing Partner, Posaidon Capital.
- Katherine Birnie, Managing Director, Ecosystem Investment Partners.
- Darius Sarshar, Investment Director, SLM Partners.
- Pierre Rousseau, Senior Strategic Advisor, Sustainable Business, BNP Paribas.
While you are here…
Public equity markets are expected to play a decisive role in investment portfolios for nature. But selecting companies to be part of public nature funds must require companies to prove a positive impact on nature overall (not just through a particular business unit or product). This will require independently audited corporate natural capital valuations. Earlier this year, Earth Security CEO discussed the role that corporate natural capital valuations need to play in investment at an Edie.net podcast, and why they matter to a future of listed equities for nature.
Sovereign bonds and debt-for-nature swaps are increasingly identified as a route create to scale natural capital investments. The experience from a range of sovereign blue and green bonds shows that for countries to credibly use bond proceeds for nature protection and restoration the right enforcement and accountability systems are needed across government institutions. Earlier this year, our interview with Jennifer Pryce, President and CEO of Calvert Impact Capital, reflected on the practical experience of setting up the Seychelles Blue Bond and what accompanying policy, metrics and accountability systems are required to take this form of financing to scale effectively.