Financing Nature-based Solutions for adaptation at scale
This report reviews the status of nature finance globally, to learn from the role played by nature-focused funds and their investment managers, understand what works, and draw conclusions for how more financing for nature-based solutions for adaptation can be mobilised. This knowledge will inform a roadmap and toolkit for identifying viable investment modalities in Bangladesh.
The focus of this report is on exploring opportunities to overcome the barriers that hold back finance and action for NbS at scale. These common barriers can include: (i) the novelty, relatively long-time scales (and so risk), (ii) local specificity (and so low replicability) and small-scale of these investments versus (ii) the relatively small commercial returns, linked to inability to monetise the full benefits of NbS, as well as (iv) difficulties in quantifying results. The lack of a conducive policy environment, both in terms of regulations and incentives, and appropriate sustainable finance frameworks, particularly in emerging and developing markets, can also be a barrier. To better understand and learn from what works, we generate and analyze a new database of the activities of 25 nature funds and their investment managers, based on publicly available data and analyse case studies.
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