Nature-Based Solutions for Sustainable Climate Action

Nature-based solutions (NbS) provide an affordable and effective way to combat climate change while fostering biodiversity and enhancing human well-being. These solutions, such as wildlife corridors, wetland restoration, and cover cropping, leverage natural systems to mitigate climate risks like flooding and erosion at a fraction of the cost of traditional infrastructure. Despite their proven benefits — highlighted by research showing that NbS outperformed engineering solutions in cost and effectiveness in over 65 percent of studies — global financing for NbS remains insufficient. Governments have the tools to bridge this gap by redirecting subsidies from harmful industries and incentivizing private investment to meet the growing demand for sustainable, nature-positive projects.

A significant barrier to advancing NbS is the exclusion of natural assets from conventional financial accounting. Current systems prioritize resource extraction over ecosystem preservation, discouraging investments in forests, wetlands, and watersheds. However, frameworks from organizations like the Natural Assets Initiative and the International Public Sector Accounting Standards Board offer pathways to value and account for natural resources. Recognizing these assets in national and corporate balance sheets could unlock substantial funding for NbS while fostering a paradigm shift toward sustainability-focused economies. Governments must adopt these frameworks to integrate NbS into financial systems, ensuring their scalability and impact.

Additionally, biodiversity credit markets can play a transformative role in funding NbS by rewarding efforts to restore ecosystems and conserve biodiversity. Building on lessons from carbon markets, biodiversity credits can incentivize responsible land management, nature-based infrastructure, and sustainable production. Initiatives like the Framework for High-Integrity Biodiversity Credit Markets provide the foundation for these systems, promoting transparency and accountability while addressing concerns like greenwashing. For NbS to reach their full potential, inclusive decision-making that values local and Indigenous knowledge is critical.