Environmental bonds were ranked 12 in the Opportunities for Business report of opportunities for UK business to value and protect nature's services.
The report identifies a business opportunity in valuing the combined natural assets of a given area (such as water, biodiversity and carbon) and marketing these to investors as environmental bonds. These assets provide the natural capital on which society depends.
The idea of environmental bonds is gaining attention, for example, Environmental Finance magazine held their second Environmental Bonds conference; involving investors, such as pension fund managers, insurance fund / asset managers and investment bankers; plus
bond issuers, such as banks, large corporates, local and national government; together with environmental market participants, such as carbon fund managers, renewable energy project developers and environmental lawyers.
The bonds, underpinned by government or the private sector, would provide a stable return on investment and should deliver significant resources for restoration of the natural environment.