Nature-based solutions are in every mandate and almost no portfolios. Ask an allocator how to actually get exposure and the honest answer is a shrug: grants return nothing, carbon credits keep collapsing on quality, and project funds lock capital for a decade with no secondary market. The demand is real; the investable vehicle has been missing.
To invest in nature-based solutions with a real claim and real yield, you buy ensurance certificates — tied 1:1 to specific natural assets, priced on cost and backed by ecosystem-service value — or coins for liquid, protocol-wide exposure. The return comes from the gap between what nature is worth and what it costs, the uplift as condition improves, and proceeds distributed to holders.
This is the allocator's how-to. For the conceptual case, see investing in natural capital; for the direct companion, how to make money with ensurance.
why NBS has been hard to invest in
The problem was never the underlying — restored watersheds, protected forests, and rebuilt soils produce enormous value. The problem is that the value carried no priced, ownable claim, so capital had only three doors, each flawed:
| existing door | the flaw |
|---|---|
| grants / philanthropy | no return, no liquidity, no compounding — pure outflow |
| carbon & offset credits | single-service, quality-questioned, price-volatile; one molecule of a whole system |
| project / fund finance | 7–10 year lockups, high minimums, no secondary exit |
Ensurance adds a fourth: a priced, tradeable claim on the whole living system, not one disaggregated service. That's what makes NBS allocatable the way real estate or infrastructure is.
the vehicles
Three ways to hold NBS exposure, from most direct to most liquid:
| vehicle | what it is | best for |
|---|---|---|
| certificates (policies) | tied 1:1 to a titled natural asset; fixed supply; priced on cost, backed by ecosystem-service value (ESV) | direct, asset-backed exposure with uplift as condition improves |
| certificates (lines) | tied to a place, group, or purpose without a single titleholder; condition-responsive pricing | thematic exposure — a watershed, a species, a cause |
| coins | fungible, protocol-wide, liquid | easy entry, diversified exposure, trade in and out on the markets |
A policy is the asset-backed instrument: every certificate is issued as "$1 of ecosystem-service value" and priced at what the land cost to protect — so if a place produces $1M of value on a $300k cost basis, you're buying $1.00 of backing for about $0.30. A line is fluid coverage priced on condition, useful where no single owner can be titled — a whole watershed, a migratory species, a restoration mandate.
where the return comes from
Three independent sources, and an engine underneath them.
1. The value gap (entry discount). The natural cap rate — a place's annual ecosystem-service value divided by its cost — runs 131–766% on measured parcels. Certificates priced on cost but backed by value carry that gap as embedded upside from day one:
| example asset | price (cost) | face (value) | embedded upside |
|---|---|---|---|
| coastal estuary | $0.76 | $1.00 | 1.3× |
| highland forest | $0.35 | $1.00 | 2.8× |
| forested wetland | $0.21 | $1.00 | 4.8× |
| beaver riparian | $0.13 | $1.00 | 7.6× |
2. Ecological uplift. Because a policy's supply is fixed, restoration and protection that raise the ecosystem-service value concentrate in the certificates that already exist — the backing per certificate grows with the condition of the land.
3. Distributions. Ensurance is a member-owned protocol: holding a certificate makes you a member, and proceeds from activity across the system flow back to holders pro-rata — as cash, additional shares, or targeted patterns.
The engine — a two-sided market. Under all three sits the reason the model funds itself: the beneficiaries who depend on the restored function (a water utility, an insurer, a downstream operator, a city) pay premiums to reduce their risk. Those premiums are the yield that pays the capital side. You're not betting on speculative demand — you're financing an asset whose customers are the parties that can't afford to let it fail.
how to allocate
- Pick your exposure. Asset-backed and specific → policies. Thematic or systemic → lines or a basket of coins. Most allocators start with a small coin position for liquidity and add certificates for the backed upside.
- Assess before you size. Every natural asset carries a RealValue valuation — ESV, cost basis, and the resulting cap rate. Read the entry ratio (value ÷ cost) the way you'd read a cap rate on a building.
- Enter. Buy on the markets, or for institutional tickets and structured allocations, work with our team on sizing and custody.
- Hold and monitor. Certificates pay through holding — track condition (MRV) and distributions the way you'd track NOI and coupons. Exit via secondary markets or the protocol exchange when you need liquidity.
risks and honest limits
This is an emerging asset class, and a serious allocator should treat it like one:
- Liquidity is early. Secondary markets and the exchange pool are live but thinner than public markets — size positions accordingly.
- Outcomes depend on verification. Returns tied to ecological uplift are only as good as the MRV behind them; independent, two-directional monitoring is the safeguard, and it's still maturing.
- Instrument choice matters. Policies are asset-backed; lines appreciate only when the protocol moves a condition-responsive price — a governance commitment that should be disclosed, not assumed.
None of these are reasons to sit out; they're reasons to start with a measured allocation and scale as the market deepens. Early, disciplined capital is exactly what compounds here.
frequently asked questions
what exactly am I buying?
A certificate is a claim on a specific natural asset (a policy) or a place/purpose (a line), backed by the value that asset produces. A coin is fungible, protocol-wide exposure. Both are held in a wallet and trade onchain.
how is this different from carbon credits?
A carbon credit monetizes one service and collapses if that one market weakens. An ensurance certificate represents the whole ecosystem and all its services bundled as one instrument — so it doesn't rise or fall on a single disaggregated output. Bundling diversifies the risk that credits concentrate.
is there yield, or just appreciation?
Both. Appreciation comes from the entry discount and ecological uplift; yield comes from distributions funded by premiums and protocol activity. The mix depends on the instrument and the asset.
can an institution hold this?
Yes. Coins and certificates have emerging GAAP treatment (fair value or real-asset/intangible depending on backing), and institutions from BlackRock to the World Bank are already moving assets onchain. For mandates, custody, and reporting, talk to our team.
next steps
- explore the instruments — certificates tied to real places, or coins for liquid exposure.
- read the asset — see how a natural asset is valued before you allocate → natural capital.
- structure an allocation — for institutional tickets, custody, and reporting, start a conversation.
- bring it to your committee — if you sit on an investment committee or advise allocators, forward this. NBS exposure with a real claim is worth an agenda slot.