Before nature can be funded, it must be found

Ask a project developer how they find investors for environmental projects and the answer will usually involve networks, introductions and relationships, and inevitably a very long sales cycle (the time from meeting to contract). Ask an investor how they identify environmental projects and you’ll hear a similar story. Consultants make introductions, brokers connect participants, NRM organisations bring people together. Opportunities circulate through industry contacts and conferences until a deal pops out when everything magically aligns—right project at the right scale, delivered by the right people at the right time.

There is nothing wrong with this approach, it is fundamentally how business has always been done. Relationships matter, particularly in a market where projects are complex, outcomes are long-term and trust is critical. The problem is that relationships are an inefficient discovery mechanism.

A company looking to invest in environmental outcomes can spend months identifying projects that align with their objectives. At the same time, project proponents can struggle to reach organisations that may be actively looking for exactly what they are offering. Both parties exist but cannot see each other through the fog.

Markets become more efficient when discovery improves. Buyers gain visibility of available options. Sellers gain visibility of potential customers. The transaction itself may not change, but the likelihood of a successful match increases dramatically.

The accommodation market is a relatable analogy. Before online marketplaces, accommodation was discovered through travel agents, guidebooks and recommendations. The rooms existed. Travellers existed. Transactions occurred every day. What changed was the ease with which people could discover options that matched their needs. There is nothing wrong with the old model, the current model is just more efficient for everyone.

Every new investment begins with the same question: what opportunities are available? Only after that question is answered do methodologies, due diligence, commercial terms and investment decisions come into play.

Natural capital markets face a similar challenge. Investors need a way to understand what projects exist, where they are located and what outcomes they will deliver. Project developers need a way to promote opportunities beyond their immediate circles. Neither requirement is about closing a deal. Both are about making introductions from which a relationship can be developed.

This is no longer a hypothetical problem. There is growing evidence that the private sector is keen to invest in environmental outcomes. Major banks have established sustainable finance targets worth tens of billions of dollars. Superannuation funds, insurers and impact investors are creating dedicated environmental allocations. Investor surveys show growing interest in nature-related opportunities and the intention to increase deployment.

But before nature can be funded, it must be found.