Toolbox on Financing Nature-Based Solutions

The report argues that because Nature-based Solutions (NbS) are often viewed as public goods and are in a nascent stage of commercial development, they require a combination of ecosystem building, public sector incentives, and specific de-risking tools. It identifies guarantees as the most catalytic instruments for attracting private capital and emphasizes that technical assistance and concessional capital must be used to prove commercial viability before NbS can scale through direct investment alone.

• Guarantees are identified as the most effective tools for attracting private capital to NbS because they create a safer environment for testing new solutions and familiarizing investors with new sectors, especially while many NbS are still proving their ability to generate revenue.
• The public sector is essential for scaling NbS by providing direct concessional funding, technical support, and creating regulatory environments and incentives that establish new revenue streams for nature.
• Because NbS markets are in an early stage, they require 'ecosystem building'—including investing in teams, educating investors, and piloting approaches—to demonstrate profitability and commercial viability before they can be replicated at scale.
• Cash flows for NbS can be generated by monetizing the value of interventions and incentivizing engagement from beneficiaries such as insurance agencies, utility companies, and social enterprises, or by regulating blue and carbon markets.

APA

Climate Policy Initiative (2024). Toolbox on Financing Nature-Based Solutions. https://www.climatepolicyinitiative.org/publication/toolbox-on-financing-nature-based-solutions/

Chicago

Climate Policy Initiative. Toolbox on Financing Nature-Based Solutions. 2024. https://www.climatepolicyinitiative.org/publication/toolbox-on-financing-nature-based-solutions/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Toolbox on Financing Nature-Based Solutions |date=4 September 2024 |url=https://www.climatepolicyinitiative.org/publication/toolbox-on-financing-nature-based-solutions/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024toolbox, author = {{Climate Policy Initiative}}, title = {{Toolbox on Financing Nature-Based Solutions}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/publication/toolbox-on-financing-nature-based-solutions/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }