4. Enabling Restoration Finance
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Elena, community forest NGO
I help local stakeholders engage in policy development. When a new policy is being developed, I have to be able to explain to my stakeholders and capture their response in a way that will have an impact.
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Peter, policy-maker
I'm not a specialist in forestry! I have to quickly fully pull together briefings on complex topics and use non-technical language. I want to get to the key issues fast, understand the evidence and how reliable it is, hear stakeholder opinions, and find engaging examples from my country.
In this chapter, we provide a set of lessons learned on market-based financing instruments for policymakers involved in sustainable financing of ecosystem restoration. The insights we present here are informed by our own research outputs, other related research, as well as findings from SUPERB’s finance actors stakeholder workshop (‘Conclave’). We distill these findings to provide accessible and actionable recommendations tailored to policy actors. In doing so, we aim to provide evidence-based information to the primary users and regulators of market-based restoration finance instruments to help them mobilize funding for nature restoration while ensuring the delivery of verifiable restoration outcomes.
4.1 The role of policy in financing restoration
Private investment in nature faces significant challenges that limit its ability to scale without clear demand drivers, stable policies, and scientifically credible standards. The following key findings highlight lessons from global experience with nature markets to guide policymakers in addressing these barriers and maximizing the impact of market-based restoration finance.
4.2 New markets for forest goods and services
Biodiversity is vital for ecosystems and the economy, yet its value is often ignored by markets. New financial tools are emerging to encourage private investment in protecting and restoring nature.