Sustainable finance
Restoration Finance
Definition
Restoration finance is the funding of ecosystem restoration — forests, peatlands, mangroves, grasslands, coral reefs — through public budgets, development finance, results-based payments, carbon and biodiversity credits, and private investment in sustainable forestry, agriculture and ecotourism that restoration enables. The UN Decade on Ecosystem Restoration estimates restoration needs at the scale of trillions of dollars by 2030 against current flows a fraction of that.
References
Supports definition and framing.
Supports definition and framing.
Overview
How it is used
The concept structures funding strategies for the Bonn Challenge, Kunming-Montreal GBF Target 2 (restore 30% of degraded ecosystems by 2030), nature-based solution pipelines and restoration economy business models.
Why it matters
Restoration targets are promises; restoration finance is where they meet the wallet — and the current gap between the two is among the largest in environmental policy.