At the 30th Annual Conference of the European Association of Environmental and Resource Economists (EAERE 2025) in Bergen (Norway), a special track of Science-Policy-Business (SPB) workshops brought together thought leaders to explore how economic research can shape real-world solutions. As part of the SPB track, NATURANCE organised the session “Nature-based Solutions: Cost-effectiveness and Innovative Financing Strategies“, chaired by Marta Vicarelli (University of Massachusetts Amherst and CMCC).
The workshop brought together researchers and practitioners to examine how ecosystem-based approaches can contribute to climate risk reduction while delivering social and economic co-benefits. Despite growing recognition of their value, scaling up nature-based solutions (NbS) remains a challenge due to gaps in valuation methods, financing models, and policy frameworks. Speakers highlighted the need for greater standardisation, robust monitoring, and inclusive design principles to make NbS not only effective and equitable, but also financially viable. The session underscored that unlocking investment in nature-based resilience requires credible evidence, innovative instruments, and a supportive policy environment.
Marta Vicarelli (University of Massachusetts Amherst and CMCC) presented a global review showing that 65% of comparative studies find NbS more cost-effective than engineering alternatives, yet evaluation remains inconsistent and undervalued. Stefano Ceolotto (CMCC) outlined common obstacles — from regulatory uncertainty to the lack of standardised metrics — that limit private sector investment. He stressed the need for blended finance, public-private partnerships, and better integration into planning frameworks.
Guillermo García Álvarez (Vrije Universiteit Amsterdam) presented experimental results showing that households are willing to pay for NbS, particularly green roofs, especially when incentives such as insurance discounts are offered. Jaroslav Mysiak (CMCC) emphasized that insurance is evolving from a private service to a pillar of community resilience. He argued that nature should be seen as an insurable and financeable asset, and presented innovative mechanisms like ecosystem insurance and restoration-linked premiums.
