Banking on Nature: Financing Ecosystem Restoration Across the US

Across the United States, interconnected streams, wetlands and marshy landscapes support rich biodiversity beneath dense vegetation and expansive water-adapted ecosystems. However, according to US Fish & Wildlife Service, agriculture, rural and urban development have driven the loss of over 50% of US wetlands over the past several centuries, reducing vital ecological services like water filtration, flood control and habitat and weakening one of our strongest natural defenses against extreme weather and climate change.

Environmental infrastructure and mitigation banking

Environmental infrastructure provides natural flood control, improved water quality, reduced erosion, and enhanced biodiversity all quantified and verified by the US Army Corps of Engineers. Conservation easements and stewardship endowments preserve habitats and carbon sinks for decades. 

In response to growing environmental strain, mitigation banks have emerged in partnership with the creation of environmental infrastructure as a critical solution under the US Clean Water Act of 1972. By generating compensatory credits that infrastructure developers and other applicants are required to purchase before being granted permits for construction, these projects help restore and preserve wetlands and streams across the country under a “No-Net-Loss” wetlands policy introduced in 1989 to address habitat loss.

Supporting the growth of Naturion in the US

Among the market leaders within the mitigation banking industry is Naturion, an environmental infrastructure company focused on restoring degraded wetlands across the US. Since its founding in 2019, Naturion has expanded its operating portfolio to 166 mitigation banking projects across 25 states.  The company has conserved 29,150 acres of wetland and restored 1.42m linear feet of stream – greater than the size of 30 NYC Central Parks and the distance from NYC to Washington DC respectively. Naturion aims to accelerate its growth over the next several years, expanding its portfolio to more than 40 states across more than 250 projects by 2028. ^{* Source: Naturion}

To support this growth, Societe Generale recently participated in a $60 million delayed draw term loan (DDTL) to finance the construction of a greenfield mitigation bank portfolio. The financing will support the development and acquisition of stream and wetland mitigation banks that help offset the environmental impacts of critical infrastructure projects, including roadways, ports, LNG terminals, power plants, and data centers.

“We are grateful to have Societe Generale join the structuring group in this first-of-a-kind financing transaction,” said Justin Mondshine, Chief Investment Officer at Naturion. “This facility validates what we have long believed: that ecosystem restoration, when paired with rigorous permitting, science-based design, and durable credit demand, is institutional grade infrastructure. Partnering with a global bank of Societe Generale’s caliber accelerates our ability to deliver restoration at the scale this market –and the environment – demands”

Helping clients incorporate nature into their transition and adaptation strategies

The deal builds on Societe Generale’s participation in the broader environmental credit market and reinforces Societe Generale’s push on nature-based financings following the recent launch of a nature-based solutions equity partnership with Ardian. Last year, the bank helped lead a $210 million finance facility to support the development of Chestnut Carbon’s Sustainable Restoration Project, designed to convert degraded agricultural land into biodiverse forests. By leveraging our integrated debt and equity capabilities, we are enhancing our capacity to help clients incorporate nature into their transition and adaptation strategies.

“This inaugural financing for ecosystem restoration projects showcases how nature-based solutions can be structured into a credible, investable and bankable asset class. We’re proud to work alongside an established leader in the sector to support habitat and ecological preservation while helping advance a growing environmental infrastructure market,” said Valentine Sallettaz, co-Head of the Infrastructure, Digital and Technology team at Societe Generale Americas.

Marie Clara Buellingen, Head of Sustainable Finance at Societe Generale Americas, added, “Mitigation banks present a structurally attractive opportunity, supported not only by growing environmental concerns around biodiversity loss and ecological degradation, but also by sustained and growing market demand. This financing showcases how we support clients in turning environmental challenges into bankable opportunities to scale.”