From Niche To Mainstream: The Building Of An Institutional Asset Class

Document summary

Since 2014, the conservation finance field has developed rapidly and grown in depth (e.g., new structures, technologies, and players have entered the space) and breadth (e.g., more sizeable products are being launched).

This report reflects these recent developments and expands on some of the key themes of the last report. Over four chapters, the authors (1) emphasize the importance of financial vehicles as a bridge between project funding needs and investor interests; (2) argue that developing recent changes to the relevant enabling conditions may accelerate a further market uptake; (3) build a deeper understanding of the challenges to this growth and possible related solutions, based on our findings from an NGO workshop and a series of investor interviews; and (4) identify three paradigm shifts along the project maturity lifecycle that could unleash the next period of growth in the conservation finance field.