Financing for Natural Infrastructure Projects

The report highlights a significant funding gap in the Canadian Prairies, where grey water infrastructure depreciation exceeded investments by nearly CAD 3 billion between 2017 and 2021. It argues that private capital can supplement government funding through outcome-based financing models and government incentives, provided that ethical considerations regarding land rights and Indigenous values are prioritized.

• 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%.
• 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.
• Private investment in natural infrastructure is becoming more attractive as investors perceive it as less risky, influenced by successful financing precedents in the United States and globally.
• Governments can stimulate private financing for natural infrastructure through several mechanisms: cap-and-trade regulations for ecosystem services, mandatory climate and nature-risk disclosures, tax incentives, and low-interest loans.
• The integration of private finance requires addressing ethical risks, specifically regarding local land access, affordability for underserved and rural areas, and the protection of Indigenous values and perspectives.

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} }