The Nature Tech Nexus: Bridging biodiversity and business

Client:GSMA

CategoryGreen Finance

CategoryLandscape Restoration

CategorySupply Chains

As biodiversity loss increasingly threatens our planet and livelihoods, we are witnessing a global rise in digital and mobile solutions that aid in the fight to conserve and restore nature. These so-called “Nature Tech” solutions accelerate and enhance nature-based solutions (NbS) in many landscapes affected by the biodiversity and climate crises. They enable people worldwide to contribute to halting and reversing biodiversity loss by providing access to information and tools, especially for local communities and indigenous peoples in areas of high and significant biodiversity. From conserving, restoring, and sustainably using biodiversity to creating ways to share the benefits of conservation, the recent emergence of Nature Tech offers new opportunities for various stakeholders to contribute to the protection of biodiversity.

To fully harness the potential of these emerging solutions, we need to scale up effective and impactful models that have realistic business models and revenue streams. A better understanding and communication of existing and promising revenue streams and applications are necessary to accelerate further private investment and increase the chances of these technologies growing. Many private companies, including Mobile Network Operators (MNOs), are beginning to establish biodiversity strategies and goals. In the future, they will need to monitor and report their impact and actions related to biodiversity. Nature Tech has the potential to help these companies not only monitor and report but also actively contribute to biodiversity conservation and restoration efforts.

Nature^Squared has collaborated with the Global System for Mobile Communications Association (GSMA) to investigate the current role of these mobile and digital Nature Tech solutions in the Global South. The report focused on four key research areas:

  • How current mobile and digital solutions address biodiversity challenges in the Global South,
  • The business models underlying these technological solutions,
  • The current state of private investment in Nature Tech, with particular focus on the actions of MNOs to tackle the biodiversity crisis,
  • Opportunities and motivations for the private sector, and especially MNOs, to engage with and leverage Nature Tech solutions.

Expected Evolution of the Nature Tech Market

Promising Business Models for Nature Tech

By interviewing experts in venture capital, start-ups, and MNOs across Europe, Asia, and Africa, several key trends and promising business models within the Nature Tech domain have been identified. Given that most funding for Nature Tech is still focused on the Global North— with $6.5 billion allocated to projects in Europe and North America compared to $1 billion in Africa, Asia, and South America—there is a clear need for investment in solutions developed and applied in the Global South.

There are many existing business models being trialed and tested in the Global South that show promise for creating impact for people, the planet, and profit. There is no one-size-fits-all when it comes to Nature Tech business models—an abundance of use cases, revenue streams, and technologies can be combined in endless ways to create solutions that address the specific goals of entrepreneurs, investors, and communities. The key to these business cases is diversification—of technologies and revenue streams—to maximize the potential for scaling and impact. The private sector and MNOs can start engaging with these solutions now—by supporting existing projects and testing innovative solutions—to enhance the reach and potential of these technologies and projects to reduce biodiversity loss while simultaneously creating benefits for people.

Possible Combinations of Technologies, Use Cases, and Revenue Models

By highlighting the available opportunities—particularly for start-ups and the mobile industry—this report aims to shed light on the current state of the Nature Tech market and generate support for innovative solutions that address biodiversity loss and protect the planet’s invaluable natural resources. The goal is to promote a sustainable and resilient future for all.
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