“Financing urban Nature-based Solutions (NBS): A literature review from the perspective of funders”
Anna Biasin, Helen Toxopeus, Davide Pettenella, Friedemann Polzin, Mauro Masiero
Abstract
Nature-based Solutions (NBS) are increasingly recognized as relevant strategies for mitigating the pressures coming from urbanization and climate change to build resilient and sustainable cities. However, securing financing for urban NBS is a persistent barrier for their widespread implementation. Therefore, understanding how to realize (co-)finance by attracting resources from specific stakeholders – namely those that benefit from NBS - is essential to their expansion. While the need for NBS co-finance has been acknowledged, this funder's perspective on NBS has remained largely conceptual, which is what we address in this paper. Through a systematic review of the scientific literature this study identifies barriers and corresponding strategies for financing urban NBS from a funder's-oriented perspective. Knowledge sharing, fostering of innovative and alternative financing models and collaboration, also for co-financing models, are among the most cited strategies to leverage other financial resources for NBS implementation and overcoming the budget shortfalls generally affecting public actors. We conclude by proposing future research avenues. Particularly, the role of specific classes of stakeholders, namely corporations, insurance sector, real estate and water utilities, should be deeply investigated since their contributions could be relevant for the upscaling of NBS.