Despite its tremendous potential to provide economic returns alongside environmental, cultural, and social benefits, investors have shied away from investing in nature.
Conservation, restoration, and stewardship activities across Canada — including in agriculture and forestry — have long been supported by public and philanthropic funding. Investing in nature is in the public interest, but there is increasing attention on encouraging private investment in nature. However, attracting investment to nature has proven challenging to scale due to indirect revenue streams.
This explainer examines the characteristics of investing in nature that make it less compatible with traditional funding mechanisms, how projects can become ‘investment ready’, and how barriers to successful investment can be overcome.