Transparent, quantifiable return on investment through tangible environmental and social improvements

Investment Framework

Nature Investment Certificates

A Nature Investment Certificate (NIC) is a 10-year contractual agreement to conserve or restore 1 hectare of land. The funds raised from NIC sales are allocated according to a detailed conservation management plan and budget. This covers the costs of conservation actions, community support and payouts, government fees, and all monitoring, reporting, and verification (MRV) expenses for the project’s decade-long duration.

Benefits and Returns to Investors

Nature Investment Certificate holders benefit from verified ecosystem and social gains, which are reported on over the ten-years via ValueNature’s Investor Dashboard. This allows investors to validate their contributions and make claims.

Biodiversity Credit returns

A Voluntary Biodiversity Credit represents a measured and evidenced-based unit of biodiversity gain and is differentiated from biodiversity offsets. Although none of the notable standard setters have finalised their methodologies to measure a Biodiversity Unit of Gain (Biodiversity Credit), ValueNature are working on 3 projects that have been identified as pilots, two for the Verra Nature Framework and one Plan Vivo’s Nature methodology. As such we will ensure that our biodiversity measurements will be able to comply with any of these standards requirements, allowing Biodiversity Credits to be issued by the relevant standard authority at that point in time.

Carbon Credit returns

For applicable projects, Nature Investment Certificate holders can expect voluntary carbon offsets as a result of the biodiversity management interventions they have supported. This will include supporting more sustainable grasslands management, fire management, preventing deforestation, or working on restoration and reforestation activities. In combination these initiatives will support increases in natural capital from baseline levels and support overall improvements in soil health, land degradation and climate resilience. Carbon credits issued against projects can hold additional certification, for example CCB certification from Verra, but project reporting will go beyond any current requirements, ensuring the highest integrity and quality of Carbon Credits globally available.

Benefits and Returns to Biodiversity Custodians

We will ensure that 80 % of revenue generated from the Biodiversity Credits are passed on to the custodians responsible for protecting and growing these assets – this being indigenous people and local communities who have always lived there, current land managers and the government responsible. Biodiversity Custodians will also benefit from any increases in credit value on secondary trades, as each digital certificate will have built in royalties for the Biodiversity Custodians of at least 50%.

Price Establishment

ValueNature adopts a comprehensive approach to pricing Nature Investment Certificates by closely examining various cost components that contribute to their creation and management. The foundation of our pricing structure begins with the ‘Cost of Production,’ which encapsulates the necessary investments for biodiversity protection and or restoration activities on the project site. This includes but is not limited to labour costs, materials, land management, and any required technological solutions.

Building on this base, we then consider the ‘Owner/Rights Holder Benefits,’ which account for the opportunity costs faced by landowners or community members involved in the project. Opportunity costs could include foregone agricultural revenue, alternative land-use options, or any other economic activities that stakeholders could engage in if not for the biodiversity project. This ensures that the local communities or individuals who forgo other revenue-generating activities for the sake of biodiversity are fairly compensated.

Lastly, we add the ‘Operational Costs’ associated with the entire credit lifecycle. This encompasses the costs incurred for monitoring the project’s biodiversity impact, periodic reporting to stakeholders, third-party verification processes, credit issuance, and finally, the transaction costs related to credit trading in the marketplace.

By systematically accounting for these multiple layers of costs, we aim to arrive at a price that not only covers the project’s expenses but also ensures equitable benefits for all stakeholders involved. This transparent and multi-dimensional pricing structure ensures the long-term viability of our biodiversity credits while fostering trust among investors, participants, and the broader community.