Nature: The New Asset Class

How investors are creating value by helping forests, wetlands, and grasslands flourish.

• Natural climate solutions (NCS) will play an important role in the energy transition, but until recently, they have received less attention and capital than other solutions.

• NCS include forests, grasslands, and wetlands that can either sequester carbon or, through preservation, prevent its release.

• Now, NCS are emerging as a new asset class, spurred along by the growth of carbon markets, progress toward shared standards, a flourishing ecosystem of players, and technological innovation.

• Private capital is moving into NCS. Successful investors will pay close attention to the market and factors that include supply limitations, low correlation between price and quality, and uncertain regulatory environments.

- Dale Hardcastle, Vinayshankar Kulkarni, Gwyneth Fries, and Henning Huenteler

Nature: The New Asset Class | Bain & Company