Mobilising finance for Nature-based Solutions (NbS) remains one of the most persistent challenges for conservation, restoration, and sustainable land management. The latest session of the NATURANCE Insiders Series, held online in December 10th, brought together three Innovation Labs (KIT, ICLEI Europe and Stockholm University) to examine what is needed to unlock private and public capital for nature-positive investments.

Moderated by Laura Clavey Research Office at the London School of Economics and Political Science (LSE), the 60-minute webinar featured presentations from lab leads, a panel discussion, and Q&A with participants. The session addressed cross-cutting issues from protected areas to urban green infrastructure and landowner engagement, outlining actionable steps to improve the bankability and long-term viability of NbS projects.

Financing Conservation and Protected Areas

Andrea Staccione, from KIT Innovation lab, opened the session with an overview of barriers limiting private investment in conservation and restoration areas. Challenges include unclear standards for measuring biodiversity outcomes, long payback periods, fragmented regulatory frameworks, and high perceived performance risks. Her presentation highlighted the importance of blended financial approaches, such as public-private partnerships, insurance mechanisms, green bonds, and payments for ecosystem services, while emphasising that no single instrument can meet the full set of needs. Recommendations included hybrid business models, project bundling to increase scale, and the creation of trusted intermediaries to coordinate stakeholders and manage monitoring and revenue flows.

Strengthening Local Governance and Urban Investment Models

Kelly Baldwin Hyde, from ICLEI Innovation Lab, presented insights on financing urban green infrastructure and nature-based solutions in cities. Administrative complexity, siloed governance structures, and the absence of accessible tools to quantify NbS co-benefits emerged as major obstacles.
City case studies from Budapest, Gdańsk, Utrecht, Aarhus and Poznań illustrated how municipalities can mobilise diverse funding sources by combining public budgets, water utilities, corporate partners, philanthropic actors, and private investors. A live pitch session connected cities directly with financial experts, from the European Investment Bank to Howden Broking and Climate-KIC, providing targeted guidance on improving bankability, governance models, and benefit quantification.

Engaging Landowners and Unlocking Private Investment

Jerker Jarsjö, from Stockholm University, discussed strategies to involve landowners and encourage long-term private sector participation in NbS. Key challenges include insufficient risk-sharing mechanisms, limited incentives for landowners, and a lack of clear, credible metrics for ecological performance.
The session highlighted models that align ecological and economic outcomes, stressing the need for robust monitoring frameworks, transparent governance, and investment structures that balance risks and rewards across stakeholders.

Cross-Sector Collaboration and Closing Reflections

The discussion panel reflected on common challenges across contexts, such as the difficulty in quantifying co-benefits, the need for stable regulatory frameworks, and the importance of cross-sector collaboration.
In her concluding remarks, Swenja Surminski, a leading international expert on climate change, risk finance, adaptation and disaster resilience at LSE, summarised the key lessons emerging from all three labs: the necessity of blended finance models, the value of local economic opportunities, and the critical role of trust, transparency, and strong governance. She emphasised that accelerating investment in NbS requires integrated frameworks capable of linking ecological integrity with financial performance and long-term climate resilience.

The session underscored a shared message: while public funding remains essential, it is only through coordinated action, across cities, landowners, public institutions, private investors, and intermediaries, that NbS financing can reach the scale needed for meaningful impact.

Picture: JStolp via Pixabay