Nature as Infrastructure

Hari Balasubramanian
22 minutes ago
4 min read

Against a backdrop of geopolitical tension, attention turns to what keeps societies functioning and resilient.

Energy. Supply chains. Security. Infrastructure.

But there’s a deeper layer we often overlook—one that is starting to make headlines and determines whether those systems hold under pressure. Nature. It’s the underpinning infrastructure that holds the economy together.

We tend to think of infrastructure as something we build—power grids, pipelines, roads, and institutions that support economic and social activity. In reality, infrastructure underpins. And, what is more crucial to underpinning our economy and ourselves than nature?

Let's dig into Nature as Infrastructure—what it is, why it’s gaining traction, and why it matters for business, non-profits, finance, and society.

Grab your hard hat. We’re building on the definition of infrastructure.

What is “Nature as Infrastructure”

The systems we rely on every day—forests, wetlands, soils, oceans—are real-world service providers and economic engines:

Forests → water filtration, carbon storage, cooling
Wetlands → flood protection, water purification
Soils → food production, carbon sequestration
Oceans & reefs → coastal defense, fisheries

These systems:

Appreciate in value, if maintained well
Deliver multiple services simultaneously
Mitigate risk for other economic activities
Underpin human existence on this planet!

Investors, policymakers, and businesses are starting to recognize what this means:

Nature as an asset class.
Nature as risk management.
Nature as value accretive.
Nature as infrastructure.

Why it’s gaining traction

GOVERNMENTS are integrating nature into infrastructure planning and climate adaptation strategies.

Land Use Plans are a great example. England released its first Land Use Framework that sets out a clear, long-term plan for how they use their most fundamental national asset – from producing food, to building new homes, restoring nature to delivering clean energy.

INVESTORS and BUSINESSES are recognizing and benefiting from nature-positive opportunities.

The World Economic Forum published its 50 Investible Opportunities for a New Nature Economy report that highlights 50+ investible opportunities already generating cost-savings or revenues for businesses across the real economy.
Global Canopy released its The Little Book of Nature Business, a go-to guide that shows investors, businesses, and policymakers how nature can drive value and innovation. With 80+ case studies across eight sectors and 200 actionable steps, it’s a practical roadmap for building a nature-positive economy.
Garvin Jabusch Green Alpha Investments’ blog post responds to Oren Cass of American Compass’ essay published in The New York Times. “The largest economic opportunity in human history is solving the systemic risks that threaten civilizational stability — climate disruption, resource degradation, human disease burdens, and structural inequality. The companies doing this work aren’t virtue signaling. They’re delivering superior economics right now, because the solutions to systemic risks are, by definition, exponentially more productive than the systems they replace.”

INSURERS are reassessing exposure to ecosystem degradation.

Industry groups like the UNEP Finance Initiative are pushing insurers to integrate nature into underwriting, pricing, and portfolio strategy. This 2024 report, Insuring a Resilient Nature-Positive Future , was a first-of-its-kind global guide to help the insurance industry–a significant enabler of economic activities–help steer financial sector stakeholders away from harmful practices and towards investments that protect, conserve, and restore nature.

Why Nature matters...

...for business

Operational continuity is at stake: Supply chains—from agriculture to manufacturing—depend on stable ecosystems. Water scarcity, soil degradation, and biodiversity loss are already disrupting production and increasing costs. Add in the macro-political context and we are seeing that stability in natural assets helps manage through volatility.
Regulations and disclosures are accelerating: Frameworks like the Taskforce on Nature-related Financial Disclosures -- now with over 700 businesses and financial institutions worldwide adopters -- are signaling the importance for companies to assess and disclose nature-related risks.
Competitive advantage is growing: Companies that treat nature as infrastructure—investing in watershed protection, regenerative agriculture, or coastal resilience—are reducing long-term costs and building more durable business models.
Future business opportunities: stable long-term natural infrastructure in landscapes and countries is building risk tolerance, which can be priced in debt, equity, and bond structures.

...for non-profits

From advocacy to systems integration: The narrative is shifting from “protect nature” to “invest in critical infrastructure.” That opens doors to new partners in finance, insurance, and industry.
New funding pathways: Blended finance, public-private partnerships, and outcomes-based funding models are expanding. Nature projects can now compete with—and complement—traditional infrastructure investments.
Greater influence on policy and capital flows: As governments and institutions rethink infrastructure spending, organizations that can quantify ecosystem services and resilience benefits will shape where billions flow.
Scale becomes possible: Framing nature as infrastructure unlocks larger, longer-term investments—moving beyond pilots to systemic change.

...for insurance (from guest contributor Graham Thomas)

Insurability depends on resilience: As natural disasters proliferate, a widening protection gap threatens to make vulnerable regions uninsurable. Natural infrastructure, such as mangroves, coral reefs and wetlands, acts as a physical and fiscal shock absorber that mitigates catastrophic damages and maintains market viability.
From risk carriers to risk managers: The industry is shifting from passively paying claims to proactively investing in and incentivizing hazard reduction. By directly funding nature-based solutions as institutional investments and tying premium costs to ecological performance as underwriters, the industry is leveraging its full financial weight to build resilience and lower expected payouts.
New markets for natural assets: Treating nature as infrastructure has unlocked innovative tools like parametric insurance. Living ecosystems can now be insured as public assets and rapidly repaired after disasters.
Unlocking global capital: By deploying guarantees and de-risking mechanisms, insurers provide the financial safety net required to mobilize and scale institutional investment in natural assets.

...for finance

Shifts in investment policies to account for nature as an investment theme.
Global investment into nature-based solutions now exceeds $200 billion annually, with private capital surpassing $100 billion per year—a dramatic increase from just a few years ago.
Landscapes can generate multiple, stacked revenue streams, including carbon, biodiversity, water services, regenerative agriculture and food systems, and ecosystem resilience services.

Economies are only as stable as the natural systems that support them.

For decades, we built infrastructure on top of nature. Now, we need to both invest in and build our economies around nature as infrastructure. It is the only path to a healthy economy, and for healthy, flourishing human societies.

The tools are in our hands. Organizations that understand Nature as Infrastructure and build with Nature as the foundation won’t just manage risk—they’ll shape future value.