Catalyzing finance and insurance for Nature-based Solutions


CategorieGreen finance

In the face of unprecedented loss of biodiversity and the accelerating effects of the climate crisis being felt around the world, dramatic action is needed to conserve and protect nature, transition tomore sustainable production and consumption models, and move towards a net-zero and nature-positive future.

Nature-based Solutions provide opportunities to effectively address environmental and social challenges, including nature-related financial risks. Although private sector engagement has picked up, nature-based solutions remain severely underfunded, as questions remain on how these projects can be structured, provide financial returns, and be successfully scaled.

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), Nature^Squared has been asked to provide evidence of innovative financial mechanisms, insurance models, and partnerships for scaling Nature-based Solutions. The outcomes are presented in the report ‘Catalysing Finance and Insurance for Nature-based Solutions: A Collection of Case Studies from around the World’.

The report presents a variety of credible business cases, which are in part financed by the private sector and have been successfully implemented in emerging markets and developing countries. They include investment projects, funds, and insurance vehicles across a variety of ecosystems, including mangroves, coral reefs, and agricultural systems. Building on in-depth interviews with case owners, the presented case studies provide a deep understanding of the underlying business models and financial structures and highlight key social and environmental impacts.

The report shows that the private financial sector is already supporting Nature-based Solutions. We hope that the provided examples and insights will lay the basis for new investable business cases to emerge, scaling Nature-based Solutions that tackle nature-related financial risks, whilst realising positive social and environmental impacts.

Do you want to know more?

Please reach out to us if you want to know more about the key insights of the report and the case studies featured. We are also happy to support on structuring NbS business cases and financial mechanisms.

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