Inflated expectations? Assessing the case for private investments in nature

Recent years have seen increasing calls for private investments in nature. But can this enthusiasm be translated into action or is it based on wishful thinking? We study this question by going back to first principles (what do firms need?) and present two conditions for attracting investor interest. Based on this framework we next reframe the question from what the private sector needs, to what the private sector can do right now. We argue that given the current absence of strong policies that reward nature investors for the public value they generate, the generic call for private sector participation should be replaced by more practical strategies which 'bundle' nature investments with commercial opportunities - without the need for new markets. We conclude by showing that bundling opportunities exist but are understudied and under communicated, and will necessitate overcoming information, coordination and financial barriers.