In light of the unprecedented loss of biodiversity and the increasing effects of the climate crisis felt worldwide, radical action is required to conserve and protect nature, transition to more sustainable production and consumption models, and move towards a nature-positive, emission-free future.
Nature-based Solutions offer opportunities to effectively address environmental and social challenges, including nature-related financial risks (such as disasters and extremes). Despite growing private sector involvement, Nature-based Solutions remain severely underfunded due to ongoing questions about how these projects can be structured, generate financial returns, and be successfully scaled.
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), De Natuurverdubelaars was asked to provide evidence of innovative financial mechanisms, insurance models, and partnerships for scaling up Nature-based Solutions. The findings are presented in the report ‘Catalysing Finance and Insurance for Nature-based Solutions: A Collection of Case Studies from around the World’.
The report presents a variety of valid business cases, partly funded by the private sector and successfully implemented in emerging markets and developing countries. These include investment projects, funds, and insurance vehicles across different ecosystems, such as mangroves, coral reefs, and agricultural systems.
The case studies are based on in-depth interviews with stakeholders and provide deep insights into the underlying business models and financial structures. They also include the key social and environmental impacts observed.
The report demonstrates that the private financial sector is already supporting Nature-based Solutions. It is hoped that the examples and insights provided will lay the foundation for new, investable business cases that scale up Nature-based Solutions addressing financial risks from natural processes while simultaneously achieving positive social and environmental impacts.
Want to know more?
Contact us for more information about the key insights from the report and the case studies described. We are also happy to assist you in structuring NbS business cases and financial mechanisms.