Conservation Finance - From Niche to Mainstream: The Building of an Institutional Asset Class
In this new report, which Credit Suisse developed together with the McKinsey Center for Business and Environment, the authors would like to propose a toolkit for substantially growing the investment that flows into the conservation sector, illustrated by a few concrete ideas that they deem to be scalable, repeatable, and investable. Implementing these ideas will require strong collaboration between the financial and environmental communities to find new and creative ways of solving the financial structuring and conservation challenges at hand.
of February 2016
healthy forests, clean water, and abundant habitat stand to become more
valuable as the global population climbs to nine billion by 2050. Already,
pioneering investors have put together financial solutions that combine real
assets, such as tropical forests, with cash flows from operations in fields
such as sustainable timber, agriculture, and ecotourism. Conservation finance,
as this field is known, represents an undeveloped, but emerging private sector
investment opportunity of major proportion.
Filling this gap to
finance the preservation of the world’s precious ecosystems will require USD
200 - 300 billion in additional capital, and private investment capital may be
the only source. Attracting that level of private capital will require
attractive risk-adjusted rates of return, in addition to clear and measurable
The report is available here
Tags: Biodiversity Management | Finance Industry | Case Studies
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