The climate crisis has brought the value of nature into acute focus. Natural assets, so long taken for granted, are being degraded at a rapid pace and the implications for communities around the world are clear. We depend upon nature for food, shelter, and water. Vibrant ecosystems can mitigate the impact of natural disasters, help regulate our climate and limit the spread of disease. Nature is clearly one of our most valuable assets, yet due to systemic market failures underpinning our economies, destroying nature is a more economically valued pursuit than protecting it.
But changes are afoot. Governments looking at the magnitude of the climate crisis are clear that they must address this failure. Businesses incentivised by ESG compliance and purpose-led strategy are seeking to redress the balance. And finance houses are increasingly looking at green finance instruments that can support nature.
There are many solutions to this problem. The Palladium Challenge Fund: Valuing Nature, is seeking proposals from organisations with innovative and scalable solutions to the climate crisis by placing real value on nature. We are looking for solutions that:
- Pilot new technologies and/or innovative approaches to valuing nature.
- Map and assess the value of nature.
- Create markets for natural outcomes.
- Build new finance instruments, including the use of insurance or guarantees of natural capital assets.
- Create frameworks for businesses to measure their environmental footprint and match them to potential solutions.