Challenge
US$200-400 billion annual investments are needed to preserve and restore our global ecosystems. Currently, only app. US$50 billion are spent each year to preserve the planet’s prestigious stock of natural resources – with capital raised mainly from philanthropic sources. Measuring the impact created from NII remains difficult – for instance, how to capture cash-flows and avoided costs from ecosystem investments in coral or oyster reefs providing effective flood protection and damage control?
Opportunity
Begin to model nature and ecosystem services as an asset, not as a commodity. By investing in natural infrastructure, you obviously create significant ecological and social co-benefits. Start to capture and measure these impacts. In contrast to grey infrastructure, natural infrastructure unfold its values over time, i.e. with a growing numbers of trees, oyster reefs, wetlands in place, without any additional maintenance cost.
Solution
Support our work on SDG finance and social innovation ginance to develop economically robust business solutions with integrated finance that effectively address the relevant SDG. Design and apply new financing and insurance solutions, especially for our projects on agriculture, natural infrastructure and renewable energy. Steer your banking and investment activities towards the material SDG of your clients. Start to capture, value and disclose the positive SDG impact you have created through your transactions.