The International Union for Conservation of Nature (IUCN) defines Nature-based Solutions (NbS) as “actions to protect, sustainably manage and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits” (IUCN 2016). NbS often focus on linking ecological benefits with a holistic approach offering multiple benefits, including supporting national adaptation outcomes by creating more resilient economies, societies and ecosystems (Haase 2017; UNEP 2023).

Hybrid approaches combining green and grey infrastructure often offer greater tolerance to climate variability. NbS are cost-effective in implementation, operation and maintenance, demonstrating a 1:4 cost-benefit ratio on average (WEF 2022, IUCN n.d.) and can complement or replace grey infrastructure to reduce systemic risks and asset loss. They can be 50 percent cheaper than conventional grey infrastructure, providing 28 percent better value for money (IISD 2021). This is particularly advantageous in regions where it is conventionally expensive to build and maintain grey infrastructure, for example, in mountainous regions. NbS can also serve as an integral part of climate and disaster resilient infrastructure planning, design and implementation. Examples of nature-based infrastructure solutions (NbIS), often used interchangeably with NbS, include mangroves for coastal protection, wetlands for flood control and incorporating nature in urban environments through green spaces, green roofs, urban gardens, bioswales, etc. NbIS use nature to provide direct and indirect services related to the functioning of infrastructure. For instance, using vegetation to stabilize slopes which in turn ensures the resilience of the associated road infrastructure (UNEP 2023). NbIS can influence 79 percent of all targets across the Sustainable Development Goals (SDGs), highlighting the critical role nature can play in advancing sustainable development, climate action and biodiversity conservation.

According to a Global Infrastructure Hub analysis, NbS is one of the transition pathways that can be used by governments and industry to systematically plan for infrastructure development and investment to achieve climate targets and the SDGs. UNEP estimates that adopting NbS provides 37 percent of the emission reductions needed to achieve the Paris Agreement targets (UNEP 2022). A report published by UNEP, UNOPS and the University of Oxford suggests that NbS, if combined with built infrastructure, influences 95 percent of all SDG targets. With this approach, NbIS can influence three of the four long-term goals of the Global Biodiversity Framework (UNEP 2023). However, the data on long-term sustainable infrastructure plans of G20 economies shows that the planned investment in implementing NbS per year is well below UNEP’s estimated US$ 484 billion needed to meet these targets (GI Hub 2023).

Commonly reported NbS co-benefits and disbenefits. Source: Author. Adapted from: Ommer et al. 2022

Challenges and barriers to adoption of NbS

Limited knowledge and understanding of NbS approaches is the primary barrier to the adoption and scale-up of NbS. In addition, inadequate information on cost-effectiveness, a shortage of skilled experts and transboundary actors further impacts uptake and financing. The long timeframe for ecological restoration can deter political commitment. Lack of supportive policy frameworks, regulatory environments and design standards hampers NbS implementation. Dated building codes, byelaws and incentives can further impede NbS implementation, if they are not periodically amended to accommodate innovative solutions (CDRI & Resilience Shift 2021). Unpredictable investment and revenue streams make it difficult to develop a robust business case for NbS. Lack of economic valuation and developed markets for NbS services hinder investment. Effective infrastructure planning and land use management are crucial, but competing demands, different jurisdictions and the interconnectivity of land, biodiversity and climate change complicate this process.

Opportunities for scaling 

Effective NbS implementation requires aligning the conservationist's agenda - to protect nature and enhance its resilience, with the economic planner's agenda - to utilize ecosystems to increase societal resilience.

Assessing the benefits

Quantifying co-benefits through cost-benefit analysis and comparative studies helps determine NbS suitability for specific contexts. Advanced technologies like GIS, machine learning and satellite imagery can help take a scientifically informed NbS approach.   Investment in systematic monitoring and assessment capacity is required to generate better evidence, in monetary terms, of risks and impacts and to realize long-term benefits. Systems thinking can help uncover and visualize the underlying patterns, feedback loops and dynamic relationships to better understand the costs and co-benefits of NbS.

(See example: Using Systems Thinking to understand co-benefits of a NbS project for Coastal Management and Flood Mitigation: https://www.youtube.com/watch?v=qvkrJP-cS44 . Credit: IISD, 2018)

Updating policy and comprehensive planning

Robust institutions and well-established planning structures are necessary for equitable distribution of benefits across the board. Local and indigenous communities possess vital knowledge that can inform implementation approaches on the ground (CDRI & Resilience Shift 2021). Sustained stakeholder engagement, especially with the local community, can help define evolving needs, provide general oversight and prevent the perception of NbS as an additionality instead of a norm. Public procurement, standard setting regulations and incentives can improve and evolve applications while increasing confidence in NbS among decision makers. Regulatory flexibility in standards could accommodate the diverse nature of NbS (CDRI & Resilience Shift 2021). NbS should be integrated into various frameworks and plans, including SDGs, Nationally Determined Contributions (NDCs), National Adaptation Plans (NAPs) and National Biodiversity Strategies and Action Plans (NBSAPs). At present, only 56 percent of NAPs submitted to UNFCCC identify NbS measures among adaptation actions (NAP Global Network 2024).

Informed investments

Investment in NbS is poised for growth with the implementation of net-zero and nature positive commitments, and the boom in Environmental, Social and Governance (ESG) funding. Developing a robust track record for NbS as an asset class will enhance their bankability and foster investor confidence. Investing in platforms that promote knowledge-sharing, learning and capacity-building can in turn help increase investments in NbS.

Financial products, such as sustainability-linked bonds can be linked to nature and nature-based outcomes to further drive investment. Debt-for-nature swaps and enhancing carbon credits to incorporate nature-related aspects can facilitate cash flow from the Global North to the Global South, while also addressing creditworthiness concerns. Financial mechanisms such as ecosystem services tax, tax increment financing (TIF), betterment levies, stormwater levies, etc. can be used to secure additional funding.

NbS is multi-functional and cuts across disciplines and institutions. Successful implementation requires identifying synergies and trade-offs between sectors, integrating different infrastructure systems, governance and policies. Integrating traditional technologies and indigenous methods, together with timely expert intervention supports efficient NbS implementation. Adopting an integrative business case and systems-level approaches helps minimize mis-operation and negative impacts. With these approaches, we can leverage Nature-based Solutions as the cornerstone of our infrastructure, a win-win for resilience, biodiversity and economic prosperity.

By:

Mr Arighna Mitra, Analyst – Advocacy, CDRI
Dr Suchismita Mukhopadhyay, Lead – Advocacy, CDRI

The views and opinions expressed in this blog are those of the authors and do not necessarily reflect those of the Coalition for Disaster Resilient Infrastructure (CDRI).

References

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2. Global Infrastructure Hub. (2023). What are nature-based solutions for infrastructure? https://www.gihub.org/articles/what-are-nature-based-solutions-for-infrastructure/
3. Haase, A. (2017). The contribution of nature-based solutions to socially inclusive urban development–some reflections from a social-environmental perspective. Nature-based solutions to climate change adaptation in urban areas: Linkages between science, policy and practice, 221-236.
4. IISD. (2021, October 21). Using nature in infrastructure projects could save USD 248 billion per year-study. International Institute for Sustainable Development. https://www.iisd.org/articles/nature-based-infrastructure
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8. Ommer et al. (2022). Quantifying co-benefits and disbenefits of Nature-based Solutions targeting Disaster Risk Reduction. International Journal of Disaster Risk Reduction, 75, 102966.
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