• New commitments from IFC, Proparco, and DEG bring total funding to more than $560 million
• Strategy targets high-integrity carbon projects across emerging markets
• Aligns with global goals to curb deforestation and strengthen biodiversity finance

Development Finance Institutions Back Nature Investment Push

AXA IM Alts has secured fresh backing from three leading development finance institutions — the International Finance Corporation (IFC), Proparco, and DEG — for its Natural Capital and Impact Investments strategy, expanding its total commitments to over $560 million. The move positions the Paris-based alternative asset manager, which oversees €188 billion ($216 billion) in assets, among the largest private investors focused on land-based and biodiversity-linked assets.

The latest fundraising builds on AXA IM Alts’ broader push into natural capital — a market increasingly viewed by institutional investors as essential to climate mitigation and biodiversity protection. The firm’s strategy is structured to deploy blended capital into nature-based projects that can generate both verified emissions reductions and measurable environmental and social outcomes.

Announced during COP30 in Brazil, the initiative reflects the summit’s agenda to halt and reverse deforestation and drive global restoration of forests, wetlands, and coastal ecosystems.

A Platform for Scalable Carbon and Biodiversity Solutions

The Natural Capital and Impact Investments strategy finances companies and projects that tackle the drivers of deforestation, restore degraded landscapes, and enhance conservation through high-integrity carbon credits. It combines strategic equity stakes in local market operators with direct project financing to expand access to carbon and ecosystem services.

The approach aims to channel investment into emerging markets, where access to long-term capital remains limited but where biodiversity loss and land degradation are accelerating. By targeting early-stage ecosystem projects and local capacity-building, AXA IM Alts intends to grow the market for credible carbon solutions and nature-positive investments.

Jonathan Dean, Deputy Head of Natural Capital and Impact Private Equity at AXA IM Alts, said the participation of global development financiers validates the strategy’s potential to scale. “It is a privilege to attract capital from institutions of this calibre,” Dean said. “There is a shared goal to finance solutions that deliver lasting environmental benefits while supporting vulnerable communities in emerging markets.”

IFC, Proparco, and DEG Deepen Climate Commitments

For the IFC, the World Bank Group’s private sector arm, the partnership reflects its growing role in mobilizing private finance for climate and nature-positive projects. Farid Fezoua, IFC’s Global Director for Disruptive Technologies, Services, and Funds, said the investment “has the potential to transform carbon finance markets in emerging economies, where few investors currently operate.” He noted that the strategy is expected to extend financing to smaller enterprises and generate quality jobs, particularly in rural areas.

Proparco, the French development finance institution, emphasised the alignment with its Natural Capital Strategy and the EU’s Carbon Sinks programme. Regional Director Julien Vanhooydonck said the partnership “tackles the root causes of deforestation and aims to deliver measurable climate impact alongside tangible environmental and social benefits.”

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Germany’s DEG, which focuses on private-sector development in low- and middle-income countries, framed its participation as part of a long-term commitment to biodiversity protection. Board member Monika Beck described AXA IM Alts as an “experienced impact manager” whose strategy “supports projects designed to reduce and sequester greenhouse gas emissions while fostering sustainable development.”

Implications for ESG Investors and Climate Finance

The collaboration between a global asset manager and three major development banks highlights the growing convergence of private capital and public development finance in natural capital markets. For institutional investors, the deal signals confidence in high-integrity carbon credits as investable assets, despite recent market volatility and scrutiny over offset quality.

AXA IM Alts’ portfolio structure — blending direct project investments with stakes in ecosystem service providers — may also set a model for scaling up biodiversity-linked finance. By aligning investor returns with verifiable ecological outcomes, the strategy reflects a broader industry shift toward measurable impact within private markets.

As governments and investors convene around COP30’s biodiversity and deforestation targets, initiatives like AXA IM Alts’ signal a transition toward mainstreaming nature as an investable asset class. The success of such platforms will depend on their ability to deliver credible environmental outcomes while sustaining investor confidence in an emerging — but rapidly institutionalising — sector of the climate economy.

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