Natural Capital Fund Regime

Natural Capital Fund Regime Guernsey’s Natural Capital Fund (NCF) is the world’s first regulated natural capital and biodiversity investment fund designation.

It aims to enhance investor access to the natural capital investment space by providing a trusted and transparent product that contributes to the internationally agreed objective of abating natural capital loss.

An NCF must be established with the objective of seeking a return for investors, while either making a positive contribution or significantly reducing harm to the natural world.

This could include transitional schemes such as those that commit to significantly reducing environmental harm to nature as well as those which aim to contribute positively.

Examples of natural capital funds could include:

Water Purification

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Forestry

Regenerative Agriculture

Waste Management

Circular Economy

Land Regeneration

A Natural Capital Fund must align with either: The United Nations Convention on Biological Diversity’s Post-2020 Global Biodiversity Framework’s 2030 Action Targets; The United Nations Sustainable Development Goals 12-15, or; The European Union Taxonomy for Sustainable Activities’ Environmental Objectives (c) to (f).

How it works

1

Establish a Guernsey fund, choosing from any of the island’s existing regimes

2

Determine how the scheme alignswith the NCF rules

3

Set targets for reducing harm or contributing positively to the natural world

4

Create a framework for monitoring, measuring, reviewing and reporting on performance and progress to the set targets

5

Obtain NCF designation and report on requirements

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