This paper aims to build an understanding of how shifting funds from public grants towards financial mechanisms occurs and what is lost in the process. To this end the Natural Capital Financial Facility (NCFF) is examined due to its fledgling stage which will be tracked in the coming years. The NCFF has followed a trend of putting funds before policy through bypassing policy decisions on Biodiversity Offsetting (BDO) and Payments for Ecosystem Services (PES) in Europe. In addition, this paper decodes the financial instruments that will be used in the NCFF as a window into understanding 'green' finance. Finally, the dangers of what is lost in the process of financialising 'nature' is discussed.

2014 The natural capital financial facility title page

The natural capital financial facility: A window into the 'green' economy

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