Milkywire welcomes new projects to the Nature Transformation Fund and introduces the Innovative Finance pillar

The Nature Transformation Fund (NTF), a strategic partnership with Klarna, has selected five new projects, adding a diverse range of nature and biodiversity initiatives with a focus on community empowerment and innovative financing.

"I am so excited to welcome these five new projects to the Nature Transformation Fund (NTF). These initiatives are particularly significant as we have shifted from the Give One framework to NTF, reflecting a change in focus. This round, we have placed special emphasis on adding marine and freshwater projects, addressing a gap in our portfolio.

The NTF now also includes a pillar dedicated to innovative financing, ensuring we support projects that aim for long-term financial sustainability. I am especially excited about the initiatives that empower local communities to manage resources and diversify their income through micro businesses.

I am looking forward to learning from financial mechanisms like impact bonds and loans. I know we will gain valuable insights from these projects, especially with two of them located on the same island in Indonesia, providing us with unique opportunities for cross-project learning. It’s also exciting to see the addition of a freshwater project within the urban context, particularly tied to city resilience." - Jill Raval

Selected projects:

Rare: Rare curates the world’s first Small-Scale Fisheries Impact Bond in Indonesia. Rare’s pioneering project in Southeast Sulawesi establishes five new "Managed Access with Reserves (MA+R)" areas for community-led fisheries co-management. These areas will be designated as Other Effective Area-Based Conservation Measures (OECMs), contributing to the conservation of vital marine ecosystems, including corals, seagrasses, and mangroves. Rare’s Small-Scale Fisheries (SSF) Impact Bond supports sustainable employment through microbusinesses, ensuring long-term financial sustainability for local communities and fisheries. The NTF funding will help Rare formalize these MA+R areas and strengthen fisheries management, positioning the project as a model for marine conservation globally.

Blue Alliance: In Indonesia, Blue Alliance is developing the Blue Finance Impact Facility, a blended finance mechanism designed to regenerate coral reef ecosystems in Central Sulawesi. This initiative will support the management of 16 Marine Protected Areas (MPAs), covering 600,000 hectares of coral reefs. By linking sustainable businesses like ecotourism and aquaculture with the conservation of these MPAs, Blue Alliance ensures long-term environmental and financial sustainability. NTF funding will support preparatory activities to make these businesses investment-ready, directly benefiting over 13,000 community members while restoring essential marine habitats.

Earth Acre: In partnership with East Africa Carbon and Biodiversity Limited, Earth Acre is working to protect key ecosystems in Kenya by creating carbon and biodiversity credits on community-managed lands. The project addresses the lengthy process of developing these credits by providing direct cash transfers to landowners. NTF funding will support community engagement, sustainable land management, and a technology platform to manage payments and track biodiversity. Earth Acre’s scalable model offers both ecological and economic benefits, positioning it as a leader in sustainable land use and conservation finance.

Conservation Finance Alliance: The Conservation Finance Alliance (CFA) Incubator is a global initiative that focuses on identifying and supporting groundbreaking conservation finance solutions. Through mentorship, grants, and development opportunities, CFA nurtures high-impact projects that have the potential to scale globally. NTF funding will contribute to the success of the incubator, which has already run two successful cohorts, helping innovative ideas to flourish. By leveraging its track record, CFA aims to amplify environmental and financial outcomes across diverse regions, offering scalable solutions for conservation.

Indian Institute for Human Settlements: This pilot project in Bengaluru addresses the urgent need for sustainable water management in urban areas. By integrating ecological restoration with urban planning, the Indian Institute for Human Settlements (IIHS) aims to enhance biodiversity and water security. The initiative will focus on revitalizing urban lakes, constructed wetlands, and blue-green spaces, contributing to city resilience. NTF funding will support the development of restoration plans and long-term monitoring, offering a scalable model for urban ecology in water-stressed regions.

Selection process

This year, the NTF received a diverse range of proposals following a call for proposals. Each project was reviewed internally by Milkywire and an external advisory group, with selections based on measurable impact, additionality, replicability, local ownership, and the potential to drive catalytic change.

Fund impact

Since its start in 2021, the Nature Transformation Fund has supported 18 projects across 31 countries and 6 continents, amassing $16M in support from Klarna for protecting vital ecosystems and supporting local communities. With the addition of these five projects, the NTF continues to build a portfolio of innovative and high-impact initiatives that deliver environmental, economic and social benefits.

If you're interested in partnering with us to support pioneering nature-based solutions or to learn more about our funding models, please get in touch.