The policy, legal, and governance issues associated with financing forest restoration are complex and dynamic. Recent examples are the Nature Restoration Regulation (NRR), the Taskforce on Nature-related Financial Disclosures (TNFD), and diverse carbon credit systems. There is a critical connection between policy and finance that can facilitate or hinder the flow of capital into impactful restoration efforts. Key legislative and voluntary drivers can effectively stimulate investment in forest restoration. Effective government policies and governance structures can enhance these efforts, ensuring that financial strategies are better aligned with the goals of forest restoration. This understanding helps you navigate the evolving landscape and uncover opportunities for sustainable investments across Europe.
Despite global commitments to halt biodiversity loss, public funding falls short. Learn why national and international policy discussions increasingly emphasize scaling private investment through nature markets, incentives, and corporate sustainability mechanisms.
Markets for ecosystem services only function where the policy environment promotes and supports them. Understanding tensions and instabilities in the policies and laws that underpin the activity you are investing in is vital. Here we unpack some of the policy aspects to consider when investing – especially the potential for tensions between regulations at different levels, and indicators of policy stability.