Funds Europe, in conjunction with Gresham House, has released a report identifying key sources of sustainable and uncorrelated risk-adjusted returns from investing in natural capital.
Assets covered include sustainable agriculture, forests and timberland, and land assets acquired on the basis of legislation encouraging a market in biodiversity net gain (BNG).
As noted at the recent COP30 summit, financing of nature based solutions needs to double to more than $400bn by 2030 to align with global climate, biodiversity and land restoration goals.
Olly Hughes, managing director Forestry at Gresham House notes factors such as the structural shift towards a circular bioeconomy driving demand for timber versus carbon-intensive materials such as steel, concrete and plastic.
The forestry market is also shifting away from traditional owners such as HNWIs and family offices towards institutions including pension funds, insurers and endowments.
Click on the report image to download the full report.
