This dynamic emerging industry is where finance and nature meet. The purpose of Conservation Finance is to preserve nature and its intrinsic ecological attributes and eco-system services. The goal is to raise and manage capital to support land, water, and resource conservation.

A healthy intact eco-system provides clean and reliable water, clean air, robust biodiversity for aquatic, avian and terrestrial species. Eco-friendly projects also provide carbon capture, an additional benefit and a public good, that is under appreciated.

Valuable landscape resources left to traditional developers could be heavily degraded. While this can serve a profit purpose in the short term, the long-term environmental assets are less capable of delivering water, clean air and healthy vegetation for wildlife and for carbon capture.

The industry, though in its early stages, touts some real accomplishments. Since 2001,The Global Conservation Fund (GCF) has supported the protection of 81 million hectares (200 million acres) around the world. The GCF invested $107-million and generated more than $1 million in wages for local economies. That is real impact, yet there are challenges of course. How are the eco-services valued? If measurement is difficult, creating an income stream for investors can be challenging as well.

The Nature Conservancy, a global non-profit, is working diligently to solve these challenges and bring capital to solve ecological issues. They work in several practice areas that include biodiversity and climate change adaptation. In 2022 they raised and issued $350 million in bonds for investment in nature.

Creating dynamic funding mechanisms is difficult work. But it is needed to match investors desire for ecological outcomes with a financial incentive. These initiatives continue to face hurdles. But over time, they will become part of the solution for a healthy eco-system globally and right here in the Rocky Mountain West.

Tom Koehler