{
  "id": 17127956,
  "title": "Nature finance needs a fundamental rethink, researchers argue",
  "url": "https://urgent.news/2026/10/29/nature-finance-needs-a-fundamental-rethink-researchers-argue",
  "topic": "science",
  "section": "Science",
  "published": "2026-10-29T21:40:04.000Z",
  "source": {
    "name": "Phys.org",
    "slug": "phys-org",
    "url": "https://phys.org/news/2026-10-nature-fundamental-rethink.html"
  },
  "original_language": "en",
  "account": "Researchers argue that the concept of nature finance requires a significant overhaul, according to a new study published in Global Environmental Change. The paper, timed to coincide with COP17 of the Convention on Biological Diversity, warns that despite extensive effort, natural capital markets remain a marginal source of finance for conservation and restoration initiatives. Co-author Nathalie Seddon, a professor at the University of Oxford, laments that the markets have attracted undue attention given their limited impact. She asserts that we must prioritize the restoration of biodiverse ecosystems and the welfare of local communities who rely on these natural resources. The study identifies five major flaws in current natural capital markets: barriers to scaling, a focus on compensation rather than restoration, prioritization of financial returns over socio-ecological outcomes, measurement challenges, and justice and equity concerns. These issues often result in the marginalization of local communities, Indigenous knowledge, and participatory governance, exacerbating existing inequalities. While the authors acknowledge the progress made in enhancing the integrity of these markets, they argue that market incentives can often prioritize financial returns over ecological and social benefits. Dr. Theo Stanley, the lead author, emphasizes that natural capital markets only deliver benefits when they meet market demands, and society has invested too heavily in market-driven solutions. He calls for a shift in focus towards ecological and social outcomes, and for society to explore a broader range of approaches to address the economic incentives driving nature's decline. Justin Adams, a co-author and fellow at the Circular Bioeconomy Alliance, echoes this sentiment, stating that while markets can be a valuable lifeline for conservation projects, they cannot single-handedly overcome the root causes of environmental degradation. The researchers argue that to truly tackle the economic drivers of nature's decline, we must find new ways for stakeholders to collaborate in preserving and restoring the natural systems upon which we all depend.",
  "summary": "The authors call on governments, investors and conservation organizers to reimagine nature finance based on a central tenet: raising funds should be a means to an end, not an end in itself.",
  "key_points": [
    "Nature finance needs fundamental overhaul, study argues",
    "Five major flaws identified in current natural capital markets",
    "Shift focus to ecological, social outcomes, researchers urge"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}