Financing for Natural Infrastructure Projects

This executive summary outlines pathways to increase private investment in natural infrastructure within the Canadian Prairies to address a growing water-related infrastructure funding gap.

• Between 2017 and 2021, the depreciation of grey, water-related infrastructure in the Prairie provinces exceeded investments by approximately CAD 3 billion, representing a gap of 21.9%.
• Investor perceptions of natural infrastructure are shifting toward viewing it as a lower-risk investment, influenced by successful financing models implemented in the United States and globally.
• Outcome-based financing models are identified as promising for natural infrastructure because they utilize performance-based metrics and foster partnerships among beneficiaries, rightsholders, and stakeholders. These models require intermediary organizations to facilitate relationships and ensure alignment with Indigenous perspectives and the involvement of First Nations and Indigenous organizations.
• Private financing can be incentivized through government actions such as providing tax incentives and low-interest loans, mandating the disclosure of nature-related risks and climate opportunities, implementing cap-and-trade regulations to monetize ecosystem services, and increasing public education.
• The use of private financing for natural infrastructure necessitates ethical considerations, specifically regarding affordability, local land access and rights, the provision of projects for underserved and rural communities, and the guarantee of net environmental improvements when trading ecosystem services like carbon credits.

APA

Puzyreva, M., Carlucci, E., Uzsoki, D., & Méthot, J. (2024). Financing for Natural Infrastructure Projects. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-06/financing-natural-infrastructure-projects-summary.pdf

Chicago

Puzyreva, Marina, Edoardo Carlucci, David Uzsoki, and Josée Méthot. Financing for Natural Infrastructure Projects. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-06/financing-natural-infrastructure-projects-summary.pdf.

Wikipedia

{{cite report |last1=Puzyreva |first1=Marina |last2=Carlucci |first2=Edoardo |last3=Uzsoki |first3=David |last4=Méthot |first4=Josée |title=Financing for Natural Infrastructure Projects |publisher=International Institute for Sustainable Development |date=June 2024 |url=https://www.iisd.org/system/files/2024-06/financing-natural-infrastructure-projects-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{puzyreva2024financing, author = {Puzyreva, Marina and Carlucci, Edoardo and Uzsoki, David and Méthot, Josée}, title = {{Financing for Natural Infrastructure Projects}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jun, url = {https://www.iisd.org/system/files/2024-06/financing-natural-infrastructure-projects-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }