Skip to main content
  • Homepage
  • News
  • Insights
  • Financing nature: Policy strategies to support investment in nature markets

Insights

Financing nature: Policy strategies to support investment in nature markets

Financing nature: Policy strategies to support investment in nature markets

Nicholas Bruschi

Senior Policy Programme Manager
12.06.26

Investors are increasingly expected to respond to nature-related risks and opportunities, yet practical pathways for doing so at scale remain unclear. This Insight examines how momentum in this area is evolving in 2026, and what is needed to translate high-level ambition into real-world implementation.

Ahead of the IIGCC Summit 2026 on Monday 22 June, where nature investment will be a key topic, this Insight sets out:

  • Why nature investment is rising in urgency
  • The core challenges investors are facing
  • What is needed to mobilise capital at scale
  • How IIGCC is supporting progress in this area

These themes will be developed further at the Summit in a members-only workshop for all investor members, focused on national nature investment strategies and the conditions needed to build investable markets.

Moving from ambition to accountability

Nature investment is moving up the agenda at a critical point for delivery of the Global Biodiversity Framework. In 2026, policy signals from governments, including the UK, alongside international processes such as IPBES, have reinforced a clear message: implementation cannot wait for fully developed global frameworks. Investors are being encouraged to take practical steps now and test what can scale.

At the same time, nature is being reframed within economic and financial systems. It is now widely recognised as critical infrastructure that underpins resilience and long-term productivity across the board. This expands the investment case beyond financial returns to include risk reduction, ecosystem services and broader economic value.

However, progress remains constrained by several structural challenges:

  • Nature is still a relatively new asset class
  • Investable pipelines are limited and difficult to scale
  • Markets are underdeveloped, particularly in emerging economies

In response, policymakers are complementing global frameworks with more practical, country-level approaches that can create enabling environments more quickly. With CBD COP17 approaching as a key checkpoint on Global Biodiversity Framework implementation, the focus is shifting towards demonstrating delivery in the real economy.

Turning risk awareness into action

Investors recognise that nature-related risks are financially material. Exposure to ecosystem degradation, biodiversity loss and land use change can affect asset values, supply chains and long-term returns.

The challenge is translating this awareness into actionable insight. Measuring and managing nature-related risks remains complex, and while frameworks such as the Taskforce on Nature-related Financial Disclosures are helping to structure approaches, there is limited clarity on how to apply these across investment decision-making.

In practice, investors face several barriers:

  • Limited ability to assess and compare nature-related risks
  • Lack of clarity on actionable investment pathways
  • Difficulty identifying credible, scalable pipelines
  • Balancing clearer standards with the need to avoid additional reporting burden
  • Structural barriers in emerging markets, including perceived risk

This creates a gap between understanding risk and acting on it. Investors face uncertainty around where to prioritise, how to assess opportunities and how to incorporate nature into investment decisions at scale.

The availability of investable opportunities remains limited. Many nature-related projects are small, fragmented or early stage, making it difficult to meet requirements on scale, liquidity and risk return profiles.

The result is a clear mismatch between available capital and investable pipelines.

Building the conditions for scale

Scaling nature investment will depend on strengthening the conditions that enable capital to flow in practice. Progress is needed across three areas in particular:

  1. Country-level enabling environments
    Investment decisions are shaped by domestic policy, regulation and institutions. Clear rules, stable policy signals and effective institutions are essential to build investor confidence and reduce uncertainty.
  2. Country-level investable plans and strategies
    Complementary national-level nature strategies and plans can help align ecological priorities with economic and investment planning. Designed to be country-led and embedded in domestic frameworks, they can help generate pipelines that are credible, scalable and investable, especially when joined up with wider domestic policy and institutional settings.
  3. Capital mobilisation across markets
    Much of the opportunity for nature investment sits in emerging markets, but capital remains concentrated elsewhere. Bridging this gap will require approaches that reflect local conditions, including blended finance, risk-sharing mechanisms and stronger partnerships with local actors.

Alongside these priorities, progress on standards will remain important. Investors need clear frameworks that support transparency and comparability without creating unnecessary complexity or slowing market development.

How IIGCC is supporting progress

IIGCC is working to support the shift from ambition to implementation by bringing investor perspectives into the development of nature investment approaches.

This includes engagement with international partners such as UNDP, an implementing partner for the Global Biodiversity Framework, and multilateral development banks. The aim is to help ensure that emerging approaches, such as national-level nature strategies and plans that are investable, reflect investor needs and can support capital mobilisation.

In the UK, IIGCC is also contributing to efforts to strengthen nature-related standards and the broader policy framework. This includes engagement on the development of clear and usable nature-related standards, as well as collaboration with policymakers on the evolution of nature markets.

There is also a growing focus on bridging capital with opportunities across regions. This includes supporting dialogue between investors and stakeholders in emerging markets, helping to build pipelines that reflect both local conditions and investor expectations.

Across this work, the core message is consistent. Investors do not need to wait for perfect global frameworks. Progress will be driven by practical implementation at the country level, supported by clear standards and a stronger pipeline of opportunities.

How the IIGCC Summit workshop on nature can support investors

At the IIGCC Summit 2026, this workshop will focus on how nature investment can progress in practice.

It will examine emerging national nature investment strategies being developed with UN partners, exploring how these approaches can support scalable, investable pipelines. It will also consider the UK policy and market context, including developments in standards and market design.

Our aim is to help participants see where progress is being made and how investor engagement can help to accelerate implementation. 


Hear from JP Morgan’s Dr. Sarah B Kapnick, IPCC’s Sir Jim Skea and S&P’s Francesco d’Avack at the IIGCC Summit 2026 – as we make sense of climate in an age of rupture and competing priorities, risks and opportunities.