London’s economy could suffer $500 million in daily losses from lack of sufficient water supply. The UK’s Rebalance Earth, an asset management firm for nature-based solutions, attracted £25 million ($34.2 million) from the West Yorkshire Pension Fund to anchor its nature-based infrastructure fund.
The £19 billion pension fund owns a minority stake in Rebalance. Its new round of funding will enable Rebalance Earth to start building its portfolio. It is seeking £150 million ($205.8 million) from institutional investors, primarily pension funds.
Nature as infrastructure
Rebalance Earth invests in projects like wetland, reef and forest restoration. These projects provide carbon sequestration, flood protection, air purification and improvement in soil fertility.
“These services are monetized through long-term payments for ecosystem services,” said a representative of Rebalance Earth. “Companies and public bodies across sectors including fast-moving consumer goods, transport, real estate and utilities, pay for the benefits ecosystems deliver.”
The fund aims to generate annual returns of between 8% to 12%.
