We all know the climate crisis isn’t going away without intentional, ambitious action by stakeholders across the public, private, and nonprofit sectors. The science is clear: we’ve got to use every tool we have at our disposal, right now, if we are to avoid climate catastrophe. That includes rethinking how we fund and scale solutions that maximize the climate-fighting power of nature, including natural climate solutions (NCS). 

Traditionally, money for conservation has come from government conservation program funding, one-off philanthropic donations, and corporate foundations. That funding mix has already made a big difference, especially for early-stage projects getting off the ground.  But launching and scaling NCS, especially projects focused on reaching the hard-to-reach communities that so often are left behind in climate solutions, is expensive. If we’re serious about avoiding climate disaster, we need to rethink the way we bring NCS to the next level, and that starts with how we fund them.  

Many project developers in this space have met their side of the bargain—raising standards of quality and integrity for the entire market so funders can rest assured that their investments are making the climate impact these projects claim. Dynamic baselines have improved projects’ approach to additionality, regulatory bodies are acknowledging high-quality methodologies through internationally recognized principles, and market players are tackling challenges like permanence and leakage head-on. But the biggest challenge ahead of us remains: climate funders need to change their take on investing in nature. Without bigger, smarter, and more strategic investments, we simply won’t hit the level of climate impact needed to avoid disaster. 

With Climate Week in New York coming up, it’s the perfect moment for funders—whether they’re buying credits, investing in the market, or providing charitable funding —to rethink how they can leverage their investments.  

As the voluntary carbon market is still emerging, NCS projects need upfront capital to finance high-quality operations that also unlock access to technical and financial assistance through the market that many communities wouldn’t otherwise have access to. This work is often done long before credits are generated and available for purchase, meaning these projects have a major financing gap to fill while getting off the ground. Both corporate and philanthropic funders can play a major role in addressing this gap—benefiting the market, the people on the ground conserving our nature, and the planet. 

Reworking Corporate Partnerships 

Many companies have pledged their commitment to climate action, including participating in the voluntary carbon market to invest in nature and conservation. However, as with all new and emerging markets, companies are reticent to invest in projects that are inherently riskier given their novelty. This is where corporations have a chance to put their money where their mouth is—literally.  

Corporate buyers can step up for nature and the planet by committing to pre-payments of credits tied to milestones. That way, projects get the cash they need early, and buyers reduce their risk since payments are linked to real progress. Netflix’s partnership with the American Forest Foundation is a great example of this setup; they signed a 15-year deal to buy carbon credits, with payments based on how much land gets enrolled in AFF’s Fields & Forests program. It’s a smart model that gives projects stability and helps them scale faster.  

Upfront Philanthropic Dollars for Catalytic Impact 

Philanthropic organizations can serve as a catalyst in scaling NCS as a climate-fighting tool. Traditional philanthropic funding through one-off grants is no longer sufficient to fund the conservation needs that nature requires, especially for this market. Putting those grant dollars instead into efforts that expand access to the voluntary carbon market serves as a springboard for increased private investment into NCS, creating a more self-sustaining model that will build off the market’s own growth. Upfront philanthropic support like this builds trust in investment communities, stabilizing and increasing returns.  

To use the Family Forest Carbon Program as an example, AFF projects that for every 6 cents contributed through donors or grants, 94 cents will come from lenders, investors or carbon credit buyers.  In this case, the impact of every philanthropic dollar would be multiplied by almost sixteen times through leveraging the emerging carbon markets. That’s what I call catalytic impact.  

The bottom line is this: if we want NCS to deliver its full climate-mitigating potential, we’ve got to change how we fund it. Climate Week is the perfect chance to come together—funders, developers, communities—and design bold, innovative ways to finance the solutions nature already offers.