Global natural capital markets trade ecosystem services

Global natural capital markets trade ecosystem services like carbon sequestration, biodiversity, and water quality. They address a massive annual nature financing gap by assigning financial value to natural assets that underpin over half of the global GDP. [1, 2, 3]

Market Structure and Core Assets

• Ecosystem Services: Trading units for carbon offsets, biodiversity net gains, and nutrient management.
• Investable Classes: Allocations spanning sustainable forestry, regenerative agriculture, and blue natural capital marine systems.
• Valuation Frameworks: Use of Natural Capital Accounting (NCA) and the System of Environmental-Economic Accounting (SEEA) to measure sovereign and corporate risk. [1, 2, 3, 4, 5]

Economic Challenges and Gaps

• Financing Deficit: Private capital mobilization falls short against an estimated $700 billion to $1 trillion annual shortfall.
• Policy Gaps: Fragmented global regulation, inconsistent data standards, and short-term market incentives hinder long-term asset growth. [1, 2, 3, 4]

#NVTS™ #KCS