Natural Capital Investment Alliance commits to mobilize $ 10 billion in private capital

The announcement comes as COP26 discusses how action on forests and land use can help keep the 1.5 degree temperature target in sight, support sustainable livelihoods and achieve shared promises in terms of adaptation and funding.

NCIA aims to accelerate the development of natural capital as a primary investment theme and engage the global $ 120 billion investment management industry to effectively and efficiently mobilize this private capital for natural capital opportunities.

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Alliance members are also focusing on companies that focus on circularity as a key element in reducing pressure on forestry, biodiversity and ecosystems. NCIA members have set their future plans and have already raised or deployed $ 1.1 billion.

The NCIA was created by the Prince of Wales as part of his Sustainable Markets Initiative in January this year, and announced at the One Planet Summit on Biodiversity.

“The interdependence between human health and planetary health has never been clearer. But time is running out. As we urgently seek to save the day, we must seek to invest in natural capital as the engine of our economy, ”said the Prince of Wales.

“I created the Natural Capital Investment Alliance as part of my sustainable markets initiative to help us reach a common language on investing in natural capital and make it widespread. It is vital that we put money to work in the right way and that we improve the flow of capital, ”he added.

The NCIA also revealed 12 new members: 12Tree; ASN impact investors; the international affairs of Federated Hermes; Fidelity International; Fondaction; Foresight; Impax asset management; Kilter Rural; Capital Posaïdon; Sailing companies; Schröders; and SLM partners.

Dame Elizabeth Corley, President-elect of Schroders, said: “Schroders is very pleased to announce today that it is joining the Alliance as part of His Royal Highness’s Sustainable Markets Initiative. This alliance demonstrates the investment industry’s commitment to playing a major role in creating a path to a traditional market for natural capital. As an industry, we now need to find whole new ways to raise capital, innovating in how we deploy money to achieve results that benefit the climate, biodiversity and communities around the world.

“As members of the NCIA, we will work to help drive this change in the financial system, which is essential for increasing funding for activities that can ultimately contribute to a just and positive economy for nature.”

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Hubert Keller, Senior Managing Partner of the Lombard Odier Group, added: “Lombard Odier is proud to be a founding member of this important Alliance, inspired by the vision of His Royal Highness. We are delighted that 12 more asset managers are joining the founders to help raise capital at a scale commensurate with the opportunities and challenges.

“Today, some of the most compelling growth and yield opportunities come from a transition to a more sustainable business model that harnesses and conserves nature. At Lombard Odier, we continue to develop solutions that allow traditional investors to position their capital in all asset classes in order to take advantage of this largely untapped investment opportunity.

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