"The objective is to showcase natural capital projects that are generating positive cash flows capable of servicing investment loans"
The facility is targeted at projects that are at an advanced stage of development and have the potential to be replicated within the EU. Applications may be made under the headings:
- Green Infrastructure
- Payment for Ecosystem Services
- Biodiversity Offsets
- Pro-Biodiversity and Adaption Businesses
"Applications may be made under Green Infrastructure, Payments for Ecosystem Services, Biodiversity Offsets and Pro-Biodiversity and Adaptation Businesses"
Most natural capital investment in Europe is publicly financed and ultimately the aim of this initiative is to encourage an inflow of private capital. It is hoped that the NCFF will produce a portfolio of performing natural capital projects that can be showcased in private capital markets. The NCFF is conceived as a pump priming initiative to address a short-term market gap. The organisers are confident that there are a significant number of bankable natural capital project that will benefit from this intervention and indicate that several applications are at an advanced stage of application. No details have been made available on the lending interest rate. The NCFF will only be relevant if the interest rate is attractive to promoters of natural capital projects.
If you're interested in learning more about the NCFF, you can join a live webinar presented by the European Commission and the European Investment Bank on September 3rd from 2pm to 3.30pm. Register your interest here.
by Dr. Ciarán Fallon
Director of Stewardship & Public Goods