Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication

This research paper by the World Resources Institute examines the investment gap for nature-based solutions (NBS) in Latin America and the Caribbean (LAC). It proposes five strategies to leverage private capital—green bonds, land-based financing, blended loans, insurance policies, and endowments—and provides four recommendations to integrate NBS into infrastructure planning and financial models to ensure commercial viability and resilience.

• The Latin America and the Caribbean (LAC) region faces significant infrastructure needs, estimated between $179 billion and $313 billion annually, while grappling with pandemic-related recessions and climate change impacts.
• Nature-based solutions (NBS) currently suffer from a significant investment gap because public and philanthropic funding sources are insufficient to meet the need, necessitating the involvement of the private sector.
• To bridge the finance gap, the paper recommends incorporating NBS into traditional infrastructure models via a 'green-gray approach,' combining NBS with gray infrastructure to lower transaction costs, meet investment thresholds, and increase investor familiarity.
• The paper identifies four primary recommendations to connect finance with nature: integrating NBS into planning to create investment-ready pipelines, using traditional investment models, demonstrating performance metrics through ongoing monitoring, and increasing the monetization of co-benefits like carbon sequestration and timber products.
• Successful adoption of NBS financing strategies in LAC requires several enabling factors, including new partnerships, additional science and proof of concept, stronger governance, consistent funding streams, and policies that prioritize NBS.

APA

World Resources Institute (2021). Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication. https://www.wri.org/research/nature-based-solutions-latin-america-and-caribbean-financing-mechanisms-replication

Chicago

World Resources Institute. Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication. 2021. https://www.wri.org/research/nature-based-solutions-latin-america-and-caribbean-financing-mechanisms-replication.

Wikipedia

{{cite report |author=World Resources Institute |title=Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication |date=12 October 2021 |url=https://www.wri.org/research/nature-based-solutions-latin-america-and-caribbean-financing-mechanisms-replication |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021naturebased, author = {{World Resources Institute}}, title = {{Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication}}, institution = {World Resources Institute}, year = {2021}, month = oct, url = {https://www.wri.org/research/nature-based-solutions-latin-america-and-caribbean-financing-mechanisms-replication}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }