A new study by Climate Policy Initiative (CPI), in collaboration with the Institute for Climate and Society (iCS), outlines strategies for G20 countries to increase investments in Nature-Based Solutions (NbS), identifying three key levers essential for scaling. Developed under the G20 Sustainable Finance Working Group, the report was unveiled at the event “How to Finance the Positive Bioeconomy for Climate, Nature, and People.”
“NbS can provide up to a third of climate mitigation needs for 2030 and provide economic and social development benefits for countries. There are significant potential investment opportunities, but the wide scope and nascent development of NbS requires us to better understand the levers to overcome existing challenges,” said Barbara Buchner, CPI’s Global Managing Director.
The report examines 12 case studies, highlighting three primary levers for scaling NbS finance: fostering better enabling environments, involving beneficiaries in financial models, and using guarantees to mitigate risk.
Since NbS markets are still developing, public sector support is critical for attracting private investment. Guarantees can help mitigate risks, creating a safer space for private capital to fund NbS projects. The report emphasises the importance of creating conducive environments for private investment.
“We can apply lessons from other sectors, but there is no one-size-fits-all financing approach for NbS. Our 12 case studies show how these three levers can guide the actions of public and private sector actors to scale up investments in nature,” said Amanda Brasil-Leigh, Senior Program Associate at CPI.
The case studies focus on restoration, conservation, oceans, water, bioeconomy, and agroforestry. Other key themes include defining and monetizing nature, fostering a supportive political climate, exploring innovative financial instruments, navigating conflicts between NbS and other zero-emission solutions, and aligning with G20 initiatives.
Maria Netto, executive director of iCS said, “the G20 can leverage climate finance, especially related to nature-based solutions. Tools like blended finance can overcome important barriers to financing for nature.”
