Transition finance needs ‘realism’, not reliance on private capital alone, says Prudential chair

Nature & Climate Perspective

**The lack of scalable transition finance in emerging markets directly threatens the preservation of critical ecosystems and limits the deployment of high-integrity nature-based solutions. **

• Underfunded transition initiatives delay critical conservation projects, increasing the risk of irreversible biodiversity loss in highly vulnerable ecological zones.
• Inadequate early-stage equity financing prevents the scaling of robust carbon sequestration projects, such as LULUCF and Blue Carbon initiatives, which rely on long-term capital stability to survive initial growth phases.
• Without blended finance structures to mitigate localized currency risks, ecological restoration projects in emerging economies fail to secure the sustained, multi-decade funding necessary for long-term environmental stability.