Unlocking nature-based solutions with mitigation banking

Natural capital has long been seen as an effective portfolio diversifier for investors, offering an attractive balance of environmental and income characteristics. However, entering these markets has proved challenging for many. 

Mitigation banking, an often-overlooked opportunity, is providing much-needed entry points to U.S. ecosystem restoration markets, allowing investors to participate in nature-based solutions (NbS) through a compliance-driven market framework. 

Ecological risk remains an economic risk 

With over half of global GDP dependent on nature and its services, degrading land and water resources poses material risks to economies worldwide. The U.S. faces acute exposure, with an estimated $2.1 trillion of GDP tied to nature-dependent sectors, one of the highest concentrations globally, according to the World Economic Forum. 

Globally, wetlands filter water and prevent flooding; streams support fisheries and agricultural productivity; and diverse habitats underpin industries from tourism to pharmaceuticals. When these resources decline, economic value erodes with them. 

These threats, however, create investment opportunities in NbS. NbS strategies that directly address biodiversity loss, climate change and pollution have potential to generate attractive financial returns where measurable environmental benefits can be monetized. 

The challenge for investors has been finding scalable, transparent ways to access these opportunities.

You can now read the full whitepaper at the link below  

Supporting documents

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