Innovation Lab 7 - NATURANCE

Resilience

Advancing nature-based solutions through Innovative resilience finance.

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Summary

This Innovation Lab explored how innovative finance mechanisms can advance Nature-based Solutions and unlock investment in urban green infrastructure.

In light of the growing urgency to innovate in sustainability and resilience planning, there is a clear need for integrated responses that address the interconnections between environmental degradation, climate change, and human health. NbS offer a promising pathway by providing multiple co-benefits for biodiversity, climate resilience, and social well-being; however, their full potential remains limited by fragmented policy, finance, and governance systems.

The Lab brought together local and regional authorities, finance and insurance professionals, NbS developers, and policymakers to explore opportunities for collaboration, innovative financing, and practical mechanisms to make NbS more bankable. The challenges identified, enablers discussed, and showcased best practices provided valuable insights and recommendations to strengthen the alignment between financial systems and urban resilience goals.

Audiences

Environmental experts

Insurance professionals

NbS promoters and developers

Authorities

Outcomes

The Innovation Lab identified key challenges and enablers for advancing the financing of urban NbS:

Participants emphasized barriers such as: limited private and philanthropic funding; administrative complexity; and the difficulty of ensuring long-term maintenance and investor confidence;

In response, the Lab highlighted several enablers: distinguishing between funding and investment mechanisms; fostering stronger collaboration with investors and insurers; leveraging blended finance and partnerships; and tailoring project scale to local contexts;

A central outcome was the recognition that multi-stakeholder collaboration (bringing together public authorities, financial institutions, insurers, NbS developers, and communities) is essential to build trust, reduce risk, and accelerate implementation.

Drawing on case studies from cities like Utrecht, Gdańsk, Budapest, Valencia, and Paris, the Lab showcased practical examples of how innovative financing and cooperation can deliver multiple benefits, from enhanced biodiversity and climate resilience to improved social inclusion and urban well-being.