Nature Investment Hub and Carolinian Canada recently co-designed and delivered an Impact Bonds for Nature workshop, hosted by EY Canada. This two-blog series aims to advance the conversation on impact bonds in Canada. This blog looks at three important conversations that were held at the workshop, while the first blog highlighted learnings.
Impact bonds for nature are among a broader suite of instruments available to mobilize the capital needed for nature, and part of a broader shift in how we value nature. This transformation is already underway:
Nature Investment Hub recently co-hosted a workshop to explore the emerging potential of impact bonds for nature across Canada with Carolinian Canada Coalition, in partnership with EY. We brought together players from across the nature finance ecosystem—from Indigenous leaders and ENGOs to philanthropy, the financial sector, and government. In a companion blog, we provide an overview of impact bonds for nature, offer context on the workshop, and share our top takeaways. In this blog, we share insights from three conversations hosted during the workshop.
The real-world applications of the impact bond model presented at the workshop are at different stages of development and maturity. The Conservation Impact Bond (CIB) is preparing to launch its third offering, whereas the salmon impact bond is in the early feasibility stage. They have different ecological goals, geographies, governance approaches, and a different set of potential outcome payers who would benefit directly from the activities undertaken. This diversity highlights the nature of impact bonds—adaptable to different contexts, priorities, and partnerships. At the same time, shared learnings and relationships across these efforts create a foundation we can build on as we continue to innovate in nature-based finance in Canada.
One: Conservation Impact Bond (CIB)
Carolinian Canada Coalition hosted a conversation on the CIB, honing in on how the bond centres Indigenous leadership and takes a “whole-landscape” approach, promoting a holistic understanding of the land through Indigenous leadership, ecological integrity, and local economies and how this creates more lasting value than siloed solutions.
As the demand for nature and healthy landscapes grows, so does the need for a deeper, more integrated approach to land stewardship. Grounded in examples of a growing demand for nature, participants examined how nature is valued and considered how to build a strong business case for green infrastructure and nature-based solutions that honours Native Plants as partners and relatives and the role of financial products through the CIB.
The conversation surfaced the need for blended finance, because it increases both the number and diversity of capital sources, unlocks flexible, upfront funding responsive to ecological needs, reduces risk and cost for environmental nonprofits, and expands the scale and scope of habitat restoration.
The CIB model uses a participatory structure and cross sector collaboration. The CIB is structured around five key sectors—Indigenous Leadership, Habitat Partners, Outcome Payers, Investors, and Research/Evaluation. This collaborative design: enables strategic pooling and flexible allocation of funds; strengthens coordinated action and smoother capital flows; and grounds outcomes in Two-Eyed Seeing evaluation frameworks with over 150 ecosystem recovery strategies tracked in partnership with researchers.
Two: Salmon impact bond
Wuikinuxv First Nation and Coast Funds hosted a second conversation on the work they are doing to determine the feasibility of a salmon impact bond – alongside other potential revenue tools – assessing bond design and structure, community defined outcome metrics, market interest, risk, regulatory challenges, and scalability in preparation for an intended pilot.
The hosts shared that in the impact bond model, their intention is to create value for investors, outcomes payers and, most importantly, the Wuikinuxv Nation and its members. They explored what reconciliation means in this context.
Participants learned about the deep cultural significance of salmon to the Nation and other Nations in British Columbia, and the community’s view of the impact bond as a potential means of economic and environmental reconciliation. The discussion centred primarily around outcomes, making the link between salmon habitat restoration and cultural revitalization, improved health outcomes, language and self-sustainability. In the past, measured indicators have included: number of community members out on the land, number of spawning streams worked on, number of restoration activities, and/or capacity building.
The conversation also reinforced a key reflection from the CIB: that being on the land is essential for investors to build meaningful relationships with the places and communities their capital aims to benefit.
Three: The role of the government as outcome buyers
EY hosted a third conversation, focused on the role of government.
Canada’s path to climate resilience must be rooted in nature. As we face escalating climate risks, the importance of prioritizing nature-based solutions—not just as environmental imperatives, but as smart, cost-effective infrastructure has never been clearer. From wetlands that buffer floods to forests that store carbon and cool our cities, nature is our first line of defense.
Participants discussed how, given the scale of investment required, governments at all levels must lead. In today’s context of geopolitical uncertainty, economic volatility, and heightened scrutiny over public spending, there is a compelling case for governments to invest in nature-based solutions not only as a public good, but as a way to unlock private capital. By stepping in as outcome payers, governments can de-risk investment, build confidence in emerging models, and ensure long-term sustainable financing. It was also suggested that governments may have a unique role to play in influencing the standards, norms, and enabling conditions that guide outcomes-based contracts.
Specific recommendations to support government involvement included:
While not specifically related to impact bonds, it was suggested that the government’s sustainable jobs strategy could be leveraged to support not just the labour to deliver outcomes on the ground, but the financial skills to help design, manage, and attract capital to those initiatives.
Looking Ahead: Unlocking the Broader Value of Nature Through Collective Action
These three conversations help bring the impact model to life, examine possibilities, and look at the role of government. However, realizing the full potential of financial instruments to deliver ecological, social, cultural and economic value across Canada’s vast and varied landscapes will require a collective effort from governments, communities, practitioners, and investors.
To learn more about impact bonds for nature, read this companion blog that reflects other learnings from the workshop.
Photo credit: Raven Walkus