Nature Positive: Financing the Transition in Cities

The report highlights a critical investment gap in urban nature, noting that only 0.3% of global urban infrastructure spend is allocated to nature-based solutions. It argues that while cities contribute 80% of global GDP, 44% of this is at risk due to nature loss. The document emphasizes the need for 'nature mainstreaming' and 'nature-positive finance' to reverse biodiversity loss. It specifically analyzes MDBs, finding that urban nature projects make up less than 10% of their total approved nature expenditure. Key barriers identified include poor city creditworthiness—with fewer than 20% of the 500 largest cities in low- and middle-income countries deemed creditworthy—and a lack of standardized taxonomies. The report proposes solutions such as non-sovereign-backed loans, blended finance, and structured MDB-government collaboration to attract private capital and enhance urban resilience.

• Cities are significant economic drivers, but a substantial portion of their economic contribution is threatened by the loss of nature.
• Current financial allocations for nature-based solutions in urban infrastructure are extremely low, and overall urban nature spending by MDBs has declined.
• There is a massive disparity between financial flows that support nature and those that harm it, with nature-negative investments dominating global flows.
• Nature-based interventions in cities provide measurable economic and health benefits, such as reducing healthcare costs and increasing property values.
• The private sector's contribution to nature-positive action is relatively small and is primarily driven by return on investment and risk mitigation.
• MDBs are predominantly using investment loans for climate and nature finance, with a high concentration in high-income economies.
• A critical barrier to urban nature finance is the lack of creditworthiness among cities in developing regions.
• The absence of standardized taxonomies and measurement units for biodiversity hinders the ability of institutions to track and categorize nature finance.
• Non-sovereign-backed loans are identified as a beneficial tool for cities to pursue nature goals independently of national government priorities.

APA

World Economic Forum (2025). Nature Positive: Financing the Transition in Cities. https://reports.weforum.org/docs/WEF_Nature_Positive_Financing_the_Tranisition_in_Cities.pdf

Chicago

World Economic Forum. Nature Positive: Financing the Transition in Cities. 2025. https://reports.weforum.org/docs/WEF_Nature_Positive_Financing_the_Tranisition_in_Cities.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Nature Positive: Financing the Transition in Cities |date=January 2025 |url=https://reports.weforum.org/docs/WEF_Nature_Positive_Financing_the_Tranisition_in_Cities.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025nature, author = {{World Economic Forum}}, title = {{Nature Positive: Financing the Transition in Cities}}, institution = {World Economic Forum}, year = {2025}, month = jan, url = {https://reports.weforum.org/docs/WEF_Nature_Positive_Financing_the_Tranisition_in_Cities.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }