That is according to a report by Forest Trends and The Nature Conservancy, based on 1,731 transactions from 2016–2025 and surveys with 70 institutions representing $207trn (£155trn) in assets under management.
The findings show that more than $60bn of nature investments have been deployed over the past decade, with annual flows increasing from $2.8bn to over $14bn, and at least $180bn in private capital targeted for the years ahead – underscoring the accelerating momentum.
More than half of flows have been to working landscapes like sustainable agriculture and forestry, where nature is the critical infrastructure underpinning food production, forest products, water security, and responsible commodity supply chains.
The data also shows that investment is heavily concentrated in the Americas, with Latin America alone attracting over $15bn over the last decade, while regions like Africa and Asia remain significantly underfunded, despite their critical ecological importance.
This gap reflects the importance of policy enablers and market conditions for investment readiness, according to the researchers.
Furthermore, the findings show that institutional, return-first investors increasingly view nature investments as financially competitive, with 88% of those surveyed reporting a positive relationship between financial returns and impact.
“The scale of capital reflected in these findings is significant,” said Michael Jenkins, CEO of Forest Trends. “But just as important is the type of investors now entering the space. We’re seeing a stronger presence of institutional capital who see that nature impact and financial performance can go hand-in-hand.
“Ten years ago, this was still a fairly niche category. Today, there’s a much broader set of nature-based activities that are viewed as viable and able to attract sustained capital. Tomorrow, the trajectory is toward nature firmly in the mainstream of finance, reflecting its centrality to a resilient global economy.”
The report also highlights a growing trend toward financial risk-reducing approaches, including the use of public and philanthropic funding to bring in private capital, which is being utilised by two in three of the investors surveyed
Government-backed markets, regulations, and disclosure requirements are also driving investments, from biodiversity credits to deforestation-free supply chains. At the same time, models such as water funds are demonstrating how investments in natural infrastructure can generate reliable revenue, according to the researchers.
Overall, the analysis points to these approaches as a clear path for translating growing momentum into measurable impact supporting resilient ecosystems, communities and economies.
“This report shows that institutional investors are investing in nature,” said Jennifer Morris, CEO of The Nature Conservancy. “Not surprisingly, investors are approaching the opportunity through sectors and markets they understand, which is exactly how a space like this develops.
“We also see new structures and approaches emerging to meet the expectations of investors – and translate into real investment activity. Increasing scale will require more durable policy signals and stronger demand for products like high-quality verified carbon and sustainably produced commodities.”
Image credit: Shutterstock
Chris Seekings is the Deputy Editor of ISEP’s Transform magazine, which is published biomonthly for ISEP members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.
