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This report, prepared for the G20 Sustainable Finance Working Group, analyzes 12 case studies of blended finance instruments designed to overcome barriers to investment in Nature-based Solutions (NbS). It explores how a combination of concessional capital, technical assistance, and risk-mitigation tools like guarantees can mobilize private investment across sectors including restoration, conservation, bioeconomy, agroforestry, and ocean/water management.

The 'Toolbox on Financing Nature-Based Solutions' report by the Climate Policy Initiative examines how blended finance can overcome barriers to investing in Nature-based Solutions (NbS). It highlights that because nature is often treated as a public good, it is difficult to monetize, leading to a market failure where harmful subsidies far exceed NbS investments. The report argues that the public sector must lead ecosystem building and provide concessional capital and technical assistance to prove commercial viability. Key findings emphasize that guarantees are the most catalytic tools for de-risking private investment, as demonstrated by case studies like the AGRI3 Fund and the Asia Climate-Smart Landscape Fund.