As the world faces unprecedented challenges such as climate change and biodiversity loss, the resources needed far outstrip the capabilities of nonprofits and even governments. Yet there are seeds of hope—and much of that hope comes from the efforts of the private sector. Impact investing is rapidly becoming an essential tool, alongside philanthropy and government funding, in tackling these major problems. Valuing Nature presents a new set of nature-based investment areas to help conservationists and investors work together.
NatureVest founder William Ginn outlines the emerging private sector investing opportunities in natural assets such as green infrastructure, forests, soils, and fisheries. The first part of Valuing Nature examines the scope of nature-based impact investing while also presenting a practical overview of its limitations and the challenges facing the private sector. The second part of the book offers tools for investors and organizations to consider as they develop their own projects and tips on how nonprofits can successfully navigate this new space. Case studies from around the world demonstrate how we can use private capital to achieve more sustainable uses of our natural resources without the unintended consequences plaguing so many of our current efforts.
Valuing Nature provides a roadmap for conservation professionals, nonprofit managers, and impact investors seeking to use market-based strategies to improve the management of natural systems.
I came into this deeply skeptical of the role of impact investing to preserve nature, but this book convinced me of its role, for two main reasons. There are some things markets do well, and if we are smart enough and careful enough using them we can leverage those strengths. It’s no silver bullet, but there is a place for market based solutions I didn’t recognize.
One, we simply won’t see governments and nonprofits be able to pour enough money into achieve what we need to do, so we have to leverage private dollars or overturn the entire economy, and one of those is a lot easier than the other.
Two, private sector firms are already valuing many natural resources either explicitly or implicitly, and by establishing, broadening, and shifting those markets, we can use that to get better outcomes for nature.
I was especially interested in the water sale model in inland Australia, paired with the research showing that the crucial wetlands really didn’t need consistent water flows year to year, and could withstand incredibly low amounts of water over a few years as long as it had a full flood pulse every so often. That resiliency allows for a model of selling water allocation to farmers in dry years at a significant profit, and buying water for incredibly cheap in flood years, mimicking a natural flood cycle.