Nature Finance for Natural Resource Professionals

There is growing momentum around conservation goals, ecosystem restoration, and other nature-based solutions in the United States; recognition of the financial value that ecosystem services provide in terms of both risk reduction and cost savings; and increasingly limited public funds available for these types of projects. Many natural resource professionals are therefore turning to finance, especially private sector finance, as a potential complement to traditional grant funding. 

This primer provides background information for natural resource professionals as they consider using nature finance. It answers the following questions:

• What is nature finance and how does it differ from traditional grant funding?
• Who are the players in nature finance deals?
• What are fundamental elements of nature finance transactions?
• What payback mechanisms are available to nature projects?
• How do you know if nature finance (as opposed to traditional funding) is appropriate? 
• What are barriers and challenges to nature finance?
• What does a successful nature finance project look like? 

This primer is intended as an introductory overview for natural resource professionals interested in using finance to support conservation, restoration, and other nature-based solutions.