How can cities unlock real-world investment in nature-based solutions (NbS) while ensuring environmental, social, and financial returns? This question guided the recent NATURANCE Insiders online event: “Financing Nature: Pleading the Business Case for Urban Nature-based Solutions – Lessons from Global Practice”, which brought together experts from NetworkNature, NATURANCE, the Climate Finance Facility (CFF), the Gap Fund, UNEP, and the Sustainable Finance Observatory.
The session showcased practical financing mechanisms, risk mitigation approaches, and global examples demonstrating how NbS can act as valuable urban assets, not costs, contributing simultaneously to climate adaptation, mitigation, biodiversity protection, and social well-being.
Key Messages from the Event
Nature underpins at least 50% of global economic output, yet NbS projects remain largely dependent on public funding. Speakers highlighted the need to experiment with blended finance, develop innovative financial instruments, and create enabling conditions that can attract and de-risk private sector engagement.
A recurring message was that NbS infrastructure is as essential as traditional grey infrastructure. When recognised as an asset class, NbS can generate savings and multiple co-benefits. The Stockport Bus Interchange was presented as a successful example where NbS delivered measurable economic value, strengthened climate resilience, and improved local quality of life — forming a credible business case for investors and municipalities.
Urban NbS: Demand-Driven, Data-Driven, People-Centred
Urban NbS must be implemented through demand-driven approaches grounded in strong city ownership and informed by reliable, high-quality data. Speakers emphasised the principles of equity, inclusivity, and the importance of aligning NbS with the needs and priorities of local communities to support a just transition.
- Climate Finance Facility (CFF) shared insights from South Africa’s adaptation portfolio, illustrating how financing strategies can be tailored to local contexts. However, private sector engagement must be planned carefully to ensure that partnership models keep city interests at the centre.
- The Gap Fund reported that 19% of its approved investments now support NbS. Examples included the Urban Regeneration Project in Dhaka, which addresses pollution, climate impacts, and urban liveability. Lessons underscored the importance of strong municipal leadership and transparent data to secure financing.
- UNEP’s Generation Restoration initiative presented instruments designed to accelerate urban NbS globally, while the Sustainable Finance Observatory highlighted structural barriers — including the limited access to significant resources at subnational level — and reiterated that public policy must remain guided by public actors.