Kelley, D. I. et al. (2025) Earth System Science Data
Funding Research and Innovation for a Nature-positive Future
The Dragon Capital Chair in Biodiversity Economics brings together economics, finance, environmental science and policy to address one of the defining challenges of our time: how can we direct investment and economic activity towards protecting and restoring biodiversity?
Our work examines how funding, financial incentives and innovative market mechanisms can help overcome the economic barriers to biodiversity conservation. By working with researchers, policymakers, financial institutions, businesses and environmental organisations, we seek to develop approaches that make nature visible in economic and financial decision-making.
Funding is central to this ambition. There is a growing need to mobilise private and public capital for nature recovery, while ensuring that funding mechanisms deliver genuine and measurable environmental benefits. Our research provides the evidence and economic thinking needed to design these mechanisms effectively.
Turning Research into Investment
The Dragon Capital Chair has already contributed to the development of innovative approaches to funding environmental outcomes. Our work on the UK Woodland Carbon Guarantee, for example, helped inform the design of a market mechanism providing long-term price guarantees for woodland carbon. The scheme demonstrates how carefully designed economic incentives can encourage investment in environmental outcomes while delivering wider public benefits.
Our wider research explores how financial systems can better recognise biodiversity-related risks and opportunities, including how capital can be mobilised for nature recovery and how financial decision-making can incorporate the value of natural capital.
The Funding Hub will build on this work by identifying, developing and supporting new funding initiatives that can translate research into practical action.
Areas of Future Funding
We are exploring opportunities to develop funding programmes and partnerships across a number of areas, including:
- Biodiversity and nature recovery – supporting research and investment that delivers measurable improvements in biodiversity and ecosystem health.
- Nature-positive finance – developing approaches that help financial institutions and investors understand, manage and reduce nature-related risks.
- Environmental markets – designing effective markets and incentive mechanisms for biodiversity, carbon, water and other ecosystem services.
- Natural capital and biodiversity valuation – improving the evidence and methods used to understand the economic value of nature.
- Nature-based solutions – investigating how investment can support solutions that address climate change while delivering benefits for biodiversity and society.
- Policy innovation – developing economic instruments and funding mechanisms that can help governments achieve environmental objectives efficiently.
- Emerging markets and developing economies – exploring funding approaches that can support biodiversity conservation and sustainable development where the pressures on natural systems are greatest.
- Data, measurement and biodiversity metrics – supporting better information and tools to measure biodiversity impacts, risks and outcomes.
Building Partnerships
Effective funding for biodiversity requires collaboration across disciplines and sectors. The Dragon Capital Chair works through a broad network of academic researchers, government departments, financial organisations, businesses, NGOs and international partners.
We are interested in working with organisations that share our ambition to develop evidence-based approaches to funding nature recovery. This could include research partnerships, philanthropic support, investment-led initiatives, commissioned research, policy development or collaborative funding programmes.
Our existing work demonstrates the value of bringing different perspectives together. Projects such as RENEW have brought together academic, environmental, business and finance partners to explore how biodiversity renewal can be embedded in business and investment decisions.
Partners and Funders
A Platform for Future Innovation
The Funding Hub will provide a platform for identifying new opportunities, connecting potential funders with researchers and partners, and supporting the development of innovative approaches to financing biodiversity.
Future initiatives could include:
- Competitive funding calls for research into biodiversity economics and finance
- Fellowships and PhD studentships supporting the next generation of researchers
- Collaborative research programmes with financial institutions and investors
- Funding for pilot projects testing new environmental markets and incentives
- Research into biodiversity-related financial risk and investment
- Support for data, modelling and measurement tools
- Policy-focused research designed to inform government and international institutions
- Workshops, conferences and knowledge-sharing programmes connecting researchers, policymakers and practitioners
Funding the Next Generation
The Dragon Capital Chair is committed to ensuring that rigorous research can inform the decisions that shape our relationship with nature. By developing new funding partnerships and mechanisms, we aim to expand the evidence base, support innovative researchers and accelerate the translation of research into policy and practice.
The challenge is significant, but so is the opportunity. Better economic and financial decision-making can help redirect capital towards activities that protect and restore biodiversity, while reducing the economic and financial risks associated with its continued decline.
If you are interested in supporting research, developing a funding partnership or exploring a new initiative with the Dragon Capital Chair, we would welcome the opportunity to hear from you.
Latest Publications & Reports
Balmford, B, Day, B, Bateman, I et al. (2025) Journal of the Association of Environmental and Resource Economists
Balmford, A, Ball, T, Balmford, B, Bateman, I et al (2025) Science
Newsletter
⇪