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In the race to 2030 targets, Canadian Investor Demands and Needs on Nature Finance Hold Steady for Another Year

In the Nature Investment Hub’s second annual investor survey, investors provide insight into market trends and needs to scale capital allocation to nature in Canada. 

The full report provides detail on capital allocation trends, financial vehicles and themes that are already at play in the Canadian market. It also outlines how we are faring with regard to public-facing biodiversity commitments and adoption of reporting frameworks like the TaskForce on Nature-Related Financial Disclosures (TNFD).

Headline Market-Making Priorities for Investors

Showing no change from the previous year, the top three priorities identified by survey respondents to scale nature investment are all related to the availability of investable opportunities:

  • More investment ready opportunities that meet investor needs
  • More examples with track records of positive impact
  • More public market opportunities

Not enough progress on raise internal nature finance capacity

Within Canada and beyond our borders the need for an investment pipeline has been a consistent refrain. This finding presses the point that  investable opportunities at the right scale are not going to emerge out of thin air. What’s urgently needed in Canada is coordinated institution building within financial institutions (FIs) that can provide the supports needed to incubate, develop, and incentivize the creation of market-ready products.

Foundational measures needed across the ecosystem as a whole 

As foundational measures that are essential to establishing a stronger, more consistent pipeline of investable opportunities, respondents specifically pointed to needing:

  • Clarity on policy and regulatory conditions that will enable finance to flow to nature
  • Seed funding for investment readiness
  • Impact measurement standardization for nature metrics

Looking ahead

The survey report is intended to inform those directly investing in nature and those influencing the space, as well as to guide future conversations and strategies to engage investors. If we are able to collaborate across the nature finance ecosystem to support the needed market building for nature finance, there is a tremendous opportunity to scale investment in economic and environmental resilience, right at home in Canada. 

There is an opportunity for public, philanthropic, and blended approaches to enable private capital to play a larger role in financing nature-positive activities that have a myriad of benefits—including financial returns.

Read the report here.