In a report by Reuters, the chief executive of Climate Asset Management said that the company had raised over $1 billion in natural capital projects such as regenerative agriculture.
Demand from asset owners to invest in enhancing soil health, reforestation, and land rehabilitation has grown in recent years, although it remains a relatively specialized field. This shift follows global commitments to protect biodiversity better, according to the report from Reuters.
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The Global Biodiversity Framework, often referred to as the “Paris Agreement for Nature,” emphasises the need for a significant boost in both public and private funding—by a minimum of $200 billion each year—to address the funding shortfall related to nature conservation.
CAM, a collaboration between HSBC’s fund management division and the advisory firm Pollination, has reported increased interest from various financial investors and companies. Its Natural Capital Fund and Nature Based Carbon Fund are currently closed to new investments.
Meanwhile, the Restore Fund, created by CAM in partnership with tech giant Apple, is still open and has approximately $280 million in assets. The remaining firm assets are evenly divided between the two closed funds.
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According to CAM, the Natural Capital Fund received backing from several investors, including German insurer Gothaer Asset Management, which invested $100 million.
The Nature-Based Carbon Fund focuses on generating carbon credits through large-scale landscape restoration and conservation initiatives, and it has attracted significant interest from companies such as GSK.
Chief Executive Martin Berg, who joined the firm last year, noted that nature as an asset class is evolving from nascent to garnering increased attention from institutional investors.