Publication of Grant-Funded Research Report: “Nature Positive Investment Opportunities through Solar Parks”

London, July 30th, 2024 – Finance & Investment in Nature-Positive Energy (“FINE”) proudly announce the publication of an industry-leading research report on nature-positive investment opportunities in the solar energy sector. This research initiative, led by the University of York in collaboration with Lancaster University, NextEnergy Capital (“NEC”), and NextEnergy Solar Fund (“NESF”), explores the integration of finance and biodiversity to transition towards a nature-positive future.

The project, titled “Nature Positive Investment Opportunities through Solar Parks” (project NE/X016242/1), was funded by the National Environment Research Council (“NERC”) and NESF, and forms part of NERC’s ‘Integrating finance and biodiversity for a nature-positive future’ programme. This collaboration emphasises the importance of nature-related disclosures in sustainability reporting frameworks, aligning with the UN Convention on Biological Diversity’s Kunming-Montreal Global Biodiversity Framework (“GBF”), which aims to halt and reverse biodiversity loss by 2030 and achieve recovery by 2050.

The UK, recognised as one of the most nature-depleted countries globally, can utilise solar farms to enhance biodiversity and ecosystem benefits via sustainable management and land-use practices.  The UK Government’s Net Zero Growth Plan aims to increase solar capacity five-fold by 2035, presenting significant opportunities for nature positive investments and the development of nature markets.

Robust indicators and metrics are essential for nature positive investments and trading. These indicators must cater to various stakeholders in the solar value chain, including law firms, investment banks, asset managers, pension funds, solar farm management companies, environmental and ecological consultancies.

The report identifies several key indicators for assessing nature positive impacts in solar farms, including:

  • Area of habitat
  • Habitat connectivity
  • Level of biodiversity
  • Plant species richness
  • Invertebrate species richness
  • Bird species richness
  • Soil carbon content/sequestration
  • Resources for pollinators
  • Bee and butterfly species richness
  • Number of ecosystem services actively managed
  • Educational outreach
  • Scientific collaboration
  • Active community engagement

 

Effective indicators must be standardised, representative, auditable, and suitable for showing trends over time. They should be appropriate for financial disclosures and scalable over a portfolio of assets. Site-level reporting indicators include soil total nitrogen, soil organic matter and organic carbon, grazing animal stocking density, bird, pollinator, and bat species activity.

Early adoption of nature positive indicators positions companies advantageously as regulatory contexts evolve. Incorporating these indicators can bring reputational and philanthropic benefits while improving people’s connection with and value placed on nature. The broader application of these indicators could transform solar farm land uses, solar supply chains, create opportunities for innovative business models, and offer a sustainable nature integrated approach to a just net zero economy.

Hing Kin Lee, Vice President, Nature, NextEnergy Group, said:

“Research across nature metrics is vital in informing investment decisions, especially as we navigate the evolving regulatory ESG disclosure landscape. By assigning correct values to nature, which has historically been undervalued and thus depleted, we can make informed choices that support sustainability. This approach not only aligns with regulatory requirements but also ensures the preservation of natural resources, ultimately working towards long-term economic and environmental resilience.”

 

For further information:
NextEnergy Capital Limited +44 (0) 203 746 0700
Peter Hamid

Click here to download the full pr
Please visit naturepositiveenergy.com to download the research.