Private companies and investors can profit from the enhancement of nature in general and from specific investments allocated to improve biodiversity and ecosystem services (BES). The question is: What is the incentive, from a private sector point of view, to invest in nature, and what are the barriers and opportunities? This article demonstrates that new markets and business models are developing which are based on BES, thereby offering investment opportunities and contributing to nature conservation at the same time. Emerging BES markets include (i) sustainable forestry; (ii) ecotourism; (iii) carbon sequestration through forestry, agricultural projects and REDD (Reducing Emissions through Deforestation and Forest Degradation); (iv) watershed management; and (v) nature conservation and restoration such as wetland banking and biodiversity offset programs. This article gives an analysis of the various business models and the factors that support a proper functioning thereof, including the dependence on p…
