Study #32

Figure: Strategies and barriers for financing urban NBS.Note: In the figure, barriers are displayed on the right and strategies on the left.

Nature-based solutions insights - Who Pays for Urban Nature?

In 2024, Biasin et al. conducted a global systematic literature review (109 studies) published in Nature-Based Solutions, exploring how urban Nature-Based Solutions (NBS) are financed and why scaling them remains so hard.

Their findings say that cities increasingly rely on NBS to tackle climate risks, yet funding still lags behind ambition. Most projects depend heavily on public budgets, while private investors hesitate due to uncertain returns and difficulty monetizing benefits.

The researchers identified four key motivations for funders: risk reduction, financial return, social co-benefits, and institutional mandates; but also major barriers like fragmented governance and risk aversion.

Still, innovative financing, co-investment models, and cross-sector collaboration can unlock new capital flows.

If Nature-Based Solutions are to transform cities, cooling streets, reducing floods, restoring ecosystems, so we must rethink how we value and finance nature itself.

Biasin, A., et al. (2024). Financing urban Nature-based Solutions (NBS): A literature review from the perspective of funders. Nature-Based Solutions, 6, 100195.
https://doi.org/10.1016/j.nbsj.2024.100195