Carbon Markets, Natural Capital

SECTOR SPOTLIGHT: CARBON & NATURE

Forests store carbon. Wetlands help manage water. Healthy soils support agriculture. Ecosystems provide habitat, biodiversity and resilience.

For centuries, nature has provided enormous economic value—often without that value appearing on a balance sheet.

Forests store carbon. Wetlands help manage water. Healthy soils support agriculture. Ecosystems provide habitat, biodiversity and resilience.

Today, investors, businesses and governments are increasingly exploring ways to protect, restore and create economic value from natural systems.

This is helping create an emerging investment category known broadly as natural capital.

FORESTS & REFORESTATION

Sustainable forestry, reforestation and improved forest management can combine productive land use with carbon storage, habitat protection and long-term natural-asset value.

CARBON MARKETS

Projects that reduce, avoid or remove greenhouse-gas emissions may generate verified carbon credits that can potentially be sold within voluntary or regulated markets, depending on the project and jurisdiction.

ECOSYSTEM RESTORATION

Capital can support the restoration of wetlands, forests, grasslands, watersheds and other degraded ecosystems—creating potential environmental benefits while opening new models for conservation finance.

BIODIVERSITY

Growing recognition of biodiversity’s economic importance is encouraging new approaches to financing habitat protection, species conservation and ecosystem resilience.

ENVIRONMENTAL MARKETS

Beyond carbon, emerging markets may place economic value on outcomes involving water quality, nutrient reduction, habitat, biodiversity and other environmental improvements.

But investing in nature requires something particularly important:

Integrity.

Projects must be carefully evaluated. Environmental outcomes need credible measurement. Methodologies matter. Verification matters. Permanence matters.

The opportunity isn’t simply to assign a price to nature.

It’s to develop financial models capable of directing capital toward projects that protect and restore valuable natural systems while creating sustainable economic value.

For investors, opportunities may emerge through forestry, farmland, conservation projects, environmental commodities, private funds, project finance, private equity and other real assets.

Nature has always had value.

The investment world is increasingly learning how to recognize it.

Ecolence Sector Spotlight

Exploring the industries where capital, innovation and environmental progress intersect.

Ecolence
The Global Platform for Environmental & Impact Investments

This material is provided for educational and informational purposes only and does not constitute investment, legal, tax or financial advice. Ecolence does not recommend or endorse any investment or investment strategy. Investors should review applicable offering materials and conduct their own due diligence before making an investment decision.

CONTINUE LEARNING

Explore More From the Learning Center

Continue exploring educational resources covering environmental investing, private markets, investment structures and the environmental economy.

Natural Capital

What Is Biodiversity Investing?

Explore how investment capital can support habitat conservation, ecosystem restoration and businesses and projects designed to protect and restore biodiversity.

Carbon Markets

What Is Carbon Market Investing?

Learn how carbon markets work, how carbon credits are created and traded, and how investment capital can participate in projects designed to reduce or remove greenhouse-gas emissions.

Natural Capital

What Is Natural Capital Investing?

Explore how investment capital can be deployed into forests, farmland, ecosystems and other natural assets while pursuing economic value and improved stewardship of natural resources.

FROM KNOWLEDGE TO DISCOVERY

Understand the Market. Explore the Opportunities.

Put what you've learned into context by exploring environmental and impact investment opportunities across the Ecolence marketplace.