Publication of Report into Nature Positive Investment Opportunities through Solar Parks


Solar panel farm with wind turbines and yellow flowers and butterflies in the foreground

Finance & Investment in Nature-Positive Energy (“FINE”) have recently announced the publication of an industry-leading research report on nature-positive investment opportunities in the solar energy sector. This research initiative, led by York University in collaboration with ÅÝܽ¶ÌÊÓƵ, NextEnergy Capital (“NEC”), and NextEnergy Solar Fund (“NESF”), explores the integration of finance and biodiversity to transition towards a nature-positive future. A key contributor to this is Energy Lancaster’s Professor Alona Armstrong.

The project, titled "Integrating Finance and Biodiversity for a Nature Positive Future was funded by the National Environmental Research Council (“NERC”) and NESF. 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, which aims to stop and reverse biodiversity loss by 2030 and achieve recovery by 2050.

The UK, recognised as one of the most nature-depleted countries globally, can use 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, bringing significant opportunities for nature positive investments and the development of nature markets.

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

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.”

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