More about impact investing for wetlands

In 2015, history was made when the very first impact investment fund for wetlands was launched by the Murray Darling Wetlands Working Group, The Nature Conservancy (Australia), and Kilter Rural.

It was developed to provide a way for investors who wanted their money to do something positive for the environment and community, whilst also providing a financial return - this is known as ‘impact investment’.

Developing the ‘Murray-Darling Basin Balanced Water Fund’ was an incredibly complex piece of work, with many individuals from Australia and the United States of America, generously contributing their expertise in finances, economic modeling, law, water markets, and community engagement.

How it works, is that investors contribute funds into the Balanced Fund managed by Kilter Rural, which then purchases water entitlements in the Murray-Darling Basin. The entitlements are managed in a way that provides water for agriculture by leasing or selling water to farmers. These leases or sales, provide financial returns back to the investors.

Each year, some of the water entitlements are also donated to the Environmental Water Trust for environmental use. The Murray Darling Wetlands Working Group then manages the water on behalf of the Environmental Water Trust.

The result is water for farmers, financial returns for investors, and water for wetlands!

In November 2017, Australia’s Banksia Award was awarded to the three partners in the Balanced Fund - the Murray Darling Wetlands Working Group, Kilter Rural, and The Nature Conservancy Australia - in recognition of leadership in valuing, measuring, managing, and investing in Australia’s natural capital.

Find out more about the Murray Darling Basin Balanced Water Fund here: https://kilterrural.com/bwf/

Find out more about the Environmental Water Trust here: https://environmentalwatertrust.org.au/