Nature Finance: Concept, Approaches, and Prospects

Nature finance is a relatively new and one of the fastest-growing areas of sustainable finance, encompassing a wide range of pathways — from disclosure frameworks to investment standards and regulatory approaches. However, while in practice nature finance develops largely along the trajectory of the climate agenda, the nature-focused paradigm is distinguished by localized specificities, the non-linear character of ecological processes, and the absence of single, universal metrics.

The brief prepared by the ICLRC offers a structured overview of the nature finance concept. The author examines the current status of the global nature finance agenda and analyzes the architecture of its financial instruments. Furthermore, the review provides a comparative analysis of country-specific approaches to integrating nature finance into national financial systems, highlighting the structural imbalance between the capacities of the Global North and the financial needs of the Global South.

The review is prepared with the participation of Alexandra Khlebnova. The author expresses gratitude to Evgeniy Khilinskiy for his comments on this material and for the substantive discussion.