The Big Nature Impact Fund, a blended-finance nature infrastructure fund focused on ecosystem restoration, has secured commitments from at least four institutional investors.
Anchored by a £30 million cornerstone investment from the UK Department for Environment, Food and Rural Affairs (Defra), the new fund launched by Finance Earth will support the creation of new woodlands, the restoration of peatlands and biodiversity enhancement projects across England.
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The fund is structured with a first-loss mechanism, under which Defra would absorb the initial tranche of any investment losses. While first-loss provisions are common in blended-finance structures, Finance Earth said the arrangement represents a first for UK nature markets.
Finance Earth confirmed that the fund has secured backing from Zurich Insurance Group, Admiral Group, the Esmée Fairbairn Foundation and the Church of England’s Social Impact Investment Programme.
The first close raised £64.6 million, surpassing its £50 million target, with a pipeline of projects worth more than £100 million already identified. The fund ultimately aims to raise between £90 million and £120 million.
Capital will be deployed in partnership with landowners and specialist project developers to restore landscapes and generate long-term revenues, primarily through the sale of high-integrity carbon credits and biodiversity units under offtake agreements with corporates, real estate developers and other buyers.
The Big Nature Impact Fund is the first vehicle within Finance Earth’s UK Nature Impact Fund platform and will invest exclusively in England. Future funds are envisaged for Scotland, Wales and Northern Ireland.
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