The UK Infrastructure Bank seeks views on its role in natural capital markets

The Bank has today published a discussion paper setting out its initial thinking on how it can invest in and support the growth of natural capital markets.

16 November 2022

Investment in natural capital can play an important role delivering the Bank’s urgent mission to help tackle climate change and boost regional and local growth – for example, by locking up carbon in restored ecosystems or helping provide clean and reliable water supplies.

Recognising the pipeline of natural capital investible projects will be limited at this early stage, the Bank intends to focus on creating pathways for future private investment by demonstrating the soundness and replicability of emerging business models. Its efforts and investments will be directed towards high-integrity markets for natural capital, capable of generating and evidencing clear gains for the climate, environment, and society.

The Bank intends to work collaboratively with policymakers, project developers, investors, landowners and others to deliver this ambition. It is now calling on these stakeholders to offer their view on the discussion paper and the Bank’s future role in natural capital markets.

Kate McGavin and Helen Williams, job-share Director of Strategy and Policy at the UK Infrastructure Bank, said:

"We recognise the important role natural capital will play in supporting the UK to reach its net zero ambitions and help boost local and regional economic growth, and we are keen to engage with the market to understand how we can best add value with our investments.

"Initially we expect to build our expertise and concentrate our efforts in the three more established segments of the market, the voluntary carbon market, biodiversity net gain, and water services. We remain open to wider opportunities as they come forward."

Related information

You may also be interested to read our blog and discussion paper setting out our initial thinking on how we can invest in and support the growth of natural capital markets; it also contains instructions on how to give your feedback. You can also get in touch at naturalcapital@ukib.org.uk to share your thoughts.