Investing in Nature
A step-by-step guide
This e-learning is tailored to help you:
- better understand the challenges in investing in nature and how to overcome them;
- put together investment propositions for natural capital and biodiversity-related projects.
What you will learn
Businesses often see access to finance as a barrier in scaling up projects that benefit natural capital and biodiversity. On the other side of the table, banks and other investors struggle to develop a pipeline of investible projects that enhance natural capital and biodiversity.
This online toolkit will help you identify the cost-saving and revenue-generating opportunities that nature could unleash for you. It will help you think about the optimal financial structure for your project or business and outline practical ways for you to access financing to incorporate these solutions into your operations.
The e-learning module complements the EIB’s recent publication “Investing in nature: financing conservation and nature-based solutions,” which provides a practical guide on how to put together investment propositions.
Who is it for?
This step-by-step guide is relevant for:
- entrepreneurs exploring nature-based solutions to improve project performance, cut costs or drive new revenue,
- conservation organisations or foundations seeking to move towards a commercial business model making them less dependent on grant funding,
- corporations looking to offset the environmental impact of operations,
- financial institutions looking to support conservation or nature-based climate projects,
- fund managers considering raising capital for conservation or biodiversity projects in Europe,
- cities or municipalities inspired to become greener, more biodiversity-friendly and resilient to climate change.
Get started
Part 1: Introduction to financing investments in natural capital
The first part of the guide provides an introduction on the financing of investments in natural capital. It elaborates on:
- understanding the main challenges in setting up a natural capital investment from a financier’s perspective;
- defining the investment project;
- developing a business idea and business model;
- defining the investment need.
Download Part 1 of the guide
Watch the video recording
Part 2: Business models for conservation and nature-based solutions projects
This part of the guide focuses on the various business models for conservation projects. You will find more information on:
- business models for conservation projects;
- ways to design a business model that also contributes to conservation and/or uses nature-based solutions for climate adaptation;
- key elements of working with the EIB or other banks to present a project.
Download Part 2 of the guide, focusing on a practical case study from Rewilding Europe Capital
Part 3: Preparing financials and strengthen commercial viability of your project
During the third part, you will discover best practices on how to prepare your financial statements and how you can strengthen the commercial viability of your project. We provide you with practical guidance on:
- the preparation of historical financial statements;
- the setting-up of a simple forecast to analyse cash flows;
- the identification of key challenges and risks and how to mitigate them.
Download Part 3 of the guide
Watch the video recording
Part 4: Understanding the different types of financing
By now you have learnt the fundamentals of financing investments in natural capital, explored business models and know how to prepare the financial and commercial viability of a project. The fourth part of the guide examines the following themes.
- What are the different types of financing and their pros and cons:
- concessional and blended finance versus commercial funding;
- direct financing options through equity and debt;
- how to access debt and equity financing through intermediaries.
- How to link the pros and cons of the various funding sources with your growth objectives, key risks and current stage of development.
Download Part 4 of the guide
Watch the video recording
Part 5: Assessing appropriate legal structures for investing in natural capital
The last part of the series provides useful information on how to assess appropriate legal structures for investing your project. The areas covered are:
- an outline of the fundamentals of the legal due diligence;
- a review of the implications of different legal structures and their pros and cons in relation with various types of financing (direct lending, intermediated investments, framework loans etc.), and
- practical examples based on the experience of a diverse set of panellists, combining perspectives from a law firm, an investment fund manager and the EIB.
Download Part 5 of the guide
Watch the video recording
Give us your feedback
If you have suggestions or questions, don’t hesitate to contact us
This e-learning module is presented in partnership with:
Natural Capital Financing Facility (NCFF)
Do you have a project that contributes to promoting the EU’s biodiversity or uses a nature-based solution to adapt to climate change? Are you looking for financing?
The Natural Capital Financing Facility (NCFF) is a dedicated financial instrument set up by the EIB and the European Commission that supports projects delivering on biodiversity and climate adaptation in Europe.