Financing for ecosystem conservation is largely dependent on government budgets and philanthropic donations or grants. According to an article published on the IDB Invest blog, the lack of substantial scalability and replicability of current financing models prevents the widespread adoption of land conservation initiatives. The transition to more modern and self-sufficient conservation models, as well as access to more certain and plentiful sources of adequate and tailored financing would help with this problem.

The post argues that sustainable tourism would be a promising option to finance efforts to conserve and preserve natural ecosystems. It highlights some examples of small-scale models such as the Explora Project in Torres del Paine in Chile. According to the authors, investments driven by sustainable tourism can play an important role in institutional portfolios, since they can generate sustained income streams and provide a path to scale.

Banks and financial institutions are another essential piece of the puzzle to continue driving the robust expansion of land conservation initiatives. Thematic bonds, such as green, social and sustainable bonds and, more recently, Sustainability Linked Bonds (SLBs), have become important financial instruments to promote a sustainable and inclusive agenda.