Green for Growth: Harnessing Nature-Based Solutions for a Thriving Nature-Positive Economy

CIFI Labs Circularity Finance Green Cross United Kingdom Arivu Axalio

Nature-based solutions (NBS) are emerging as pivotal to the transition to a nature-positive economy, addressing the urgent challenges of climate change, biodiversity loss, and social equity. This transition hinges not only on recognizing the ecological benefits of NBS but also on their economic potential and market dynamics.

Market Trends and Dynamics in NBS

1. Increasing Demand and Diverse Buyers: The demand for NBS is rising globally, spurred by their integration into international policy and recognition from various stakeholders including policymakers, private firms, and citizens. These groups acknowledge the benefits NBS offer in urban planning, health, and social well-being, creating a robust market for suppliers.

2. Investment Growth: Current global investment in NBS stands at approximately $133 billion. However, to meet climate, biodiversity, and land degradation targets, this investment needs to triple by 2030 and quadruple by 2050. The World Economic Forum suggests that transitioning to a nature-positive economy could generate 395 million jobs by 2030 and requires annual investments of about $2.7 trillion.

3. Public and Private Sector Roles: The public sector currently dominates NBS financing, accounting for 86% of investments. There is a crucial need for increased private sector engagement to meet investment targets. The report suggests a strategic shift to increase private sector investment from 14% in 2021 to 40% by 2030.

4. Barriers and Opportunities: Despite the clear benefits and growing demand, investment in NBS faces significant barriers. These include the complexity of valuing ecosystem services and social benefits, gaps in knowledge and data about effective NBS implementation, and competition for public funding. Overcoming these barriers requires robust policy support, innovative financing models, and effective stakeholder engagement.

Strategic Directions for Economic Development

To capitalize on the potential of NBS and drive economic development, several strategies are essential:

- Policy Integration and Support: Policymakers need to integrate NBS into broader economic, environmental, and social policies. Supportive frameworks can incentivize both public and private investments in NBS.

- Market Development and Innovation: Developing NBS markets requires innovation in product development and service delivery. This includes creating new business models that align economic returns with ecological and social outcomes.

- Capacity Building and Stakeholder Engagement: Building capacity across sectors and engaging a broad range of stakeholders are crucial. This involves training, education, and collaborative platforms that bring together investors, policymakers, and practitioners.

- Investment in Research and Technology: Advancing NBS also demands investment in research and technology to close knowledge gaps, particularly in quantifying the economic benefits of NBS and developing scalable solutions.

The market for nature-based solutions is poised for growth, driven by increasing recognition of their economic, environmental, and social benefits. Transitioning to a nature-positive economy requires significant investment, innovative market strategies, and supportive policies. By addressing these needs, stakeholders can unlock the vast potential of NBS to contribute to sustainable economic development while tackling some of the most pressing global challenges.

Harnessing Technology for Nature-Based Solutions in a Nature-Positive Economy

Historical Context and Evolution of Technology

Initially, technology's role was largely centered on controlling and exploiting nature to meet human needs, particularly highlighted by the Industrial Revolution. This exploitation resulted in high productivity and resource use but often at the expense of environmental degradation. Over time, the perception of technology shifted towards a more constructive role, especially in mitigating environmental harm and enhancing resource efficiency.

The Shift Towards a Nature-Positive Economy

In contemporary settings, technology facilitates a more profound engagement with environmental sustainability. This is achieved through digitalization and technological innovations that offer new methods for managing and preserving natural resources effectively. The text discusses how technological advancements are now crucial in supporting cities and communities to become more nature-positive by integrating NBS at various levels of society and governance.

Case Studies and Practical Applications

Three diverse case studies from the URBiNAT project exemplify how technology empowers NBS:

1. FinBIF: Focuses on biodiversity through technological NBS, leveraging GIS and digital photography to enhance participation and data collection.

2. Sensoterra: Utilizes IoT and cloud-based technologies to manage water resources more efficiently, addressing issues like irrigation and flood mitigation.

3. Womenability: Enhances urban inclusivity through digital tools that facilitate participatory urban planning and gender-sensitive approaches.

These cases illustrate the application of digital tools that extend the reach and effectiveness of NBS, demonstrating substantial social, environmental, and economic impacts.

Technology as a Driver of Systemic Change

The text argues that technology is not merely a facilitator of incremental improvements but a driver of systemic change. This systemic change is evident in how technology redefines interactions between policy, markets, and corporate strategies towards sustainability. Technology’s role extends to creating platforms that enhance connectivity between stakeholders, fostering a more cohesive approach to implementing NBS.

Governance and Future Directions

Finally, the chapter calls for robust governance frameworks to guide the deployment of technology in supporting NBS. It emphasizes the need for a governance approach that aligns technology with long-term sustainability goals, ensuring that technological advancements contribute constructively to the nature-positive economy.

Technology holds the pivotal role in transitioning towards a nature-positive economy through the strategic implementation of NBS. There is a clear necessity of integrating technology with environmental strategies to foster sustainable urban and rural ecosystems, ultimately contributing to a resilient and sustainable global economy.

International Perspectives on Nature-Based Solutions and the Path to a Nature Positive Economy

As we delve into the global perspectives on Nature-Based Solutions (NBS), it becomes clear that there is no singular international viewpoint. Various stakeholders—urban planners, community leaders, city administrators, decision makers, policy makers, landscape architects, entrepreneurs, students, researchers, and more—bring diverse interests and approaches to the table. This chapter explores how these varied perspectives contribute to the backbone of a nature positive economy, addressing how NBS are reflected in global trends, policies impacting investment, and the challenges and opportunities that arise.

Natural Environments

The relationship with the natural environment is a primary influencer on the potential for developing a nature positive economy. Regions like South America, rich in biodiversity, provide a robust foundation for ecologically friendly tourism, which supports pro-biodiversity actions and nature conservation efforts. Sustainable tourism, as highlighted by responses in our consultation process, offers significant economic opportunities for local communities, particularly in biodiversity hotspots.

Economic Contexts

The economic backdrop of a region significantly affects the deployment of NBS. Investment in NBS is increasingly seen as crucial for tackling the dual crises of biodiversity loss and climate change. Yet, the infusion of funds into NBS projects must be wary of 'greenwashing'—where investments purportedly in the name of sustainability are funneled into environmentally harmful activities. The chapter discusses the challenges of economic systems rooted in rapid profit generation and the path dependency on growth, which often overshadow sustainable practices.

Cultural Contexts

Culturally, the integration of NBS varies significantly. Indigenous and local communities often possess longstanding knowledge systems that naturally incorporate sustainability, which must be recognized and integrated into broader economic practices. However, dominant global economic systems frequently undermine these traditional approaches, leading to biodiversity loss. This section argues for a greater appreciation and integration of indigenous knowledge in global biodiversity strategies.

Challenges and Opportunities

Globally, NBS face both challenges and opportunities that stem from political, economic, and social factors. Issues such as over-tourism, climate change, and environmental degradation pose significant challenges. Conversely, NBS offer opportunities for restoration and enhancement of ecological integrity and local community wellbeing. However, research gaps remain in areas such as sustainable tourism governance and the interplay between environmental pressures and responses.

Capacity Building and Networking

Efforts to spread awareness and build capacity for NBS are critical. Initiatives like the UrbanByNature program, supported by the H2020 Connecting Nature project, highlight the importance of global and regional networks in fostering understanding and implementation of NBS. Such programs are vital for sharing knowledge, shaping policy, and driving investment towards sustainable practices.

While the path to a nature positive economy through NBS is fraught with complexities and varies widely across different global contexts, the foundational elements—natural, economic, and cultural—provide a framework for understanding and action. This chapter underscores the necessity for an integrated approach that respects and utilizes local knowledge and conditions, supported by international cooperation and investment in sustainability.

Shifting Paradigms: Toward a Nature-Positive Economy with Nature-Based Solutions

Key Issues and Recommendations

In the concluding chapter of this analysis, we delve into the pressing issues and strategic recommendations crucial for transitioning toward a nature-positive economy centered on Nature-Based Solutions (NBS). This synthesis is drawn from open consultation responses and insights from expert working groups, as detailed in the online full report and associated consultation summary (Table 4).

Consultation Overview: Stakeholder Concerns and Priorities

The open consultations identified several key areas of concern across various stakeholder groups:

- Standards: Concerns about the misuse of NBS terminology and greenwashing are driving the call for clear, transparent standards.

- Measurement & Valuation: The need for robust metrics to quantify and value the benefits of NBS, balancing economic, environmental, and social impacts.

- Public Policy: A strong demand for supportive public policies that facilitate the implementation and scaling of NBS.

- Capacity Building & Awareness: Critical gaps in understanding and capability across financial institutions, public and private sectors, and citizens highlight the need for comprehensive educational and training initiatives.

- Economic Opportunities: Recognizing the economic potential of NBS can drive more significant investment and community engagement.

Addressing Standards (Section 5.1)

The misuse of the term NBS and associated greenwashing have raised significant concerns, prompting a call for well-defined, transparent standards that delineate what constitutes an NBS and guide its implementation across various phases—from planning and delivery to maintenance. Notable initiatives like the NetworkNature project's semester theme on NBS and quality standards emphasize the critical role of stringent standards in minimizing criticism and avoiding negative impacts like gentrification from greening projects.

Recommendations:

- Develop International Standards: Engage industry professionals in creating a consistent set of standards that accommodate the diverse applications of NBS, ensuring minimal room for greenwashing and maximizing community buy-in and investment confidence.

- Accreditation and Training: Establish accreditation schemes and training programs for independent experts to validate compliance with NBS standards, ensuring their effective implementation and maintenance.

Enhancing Measurement and Valuation (Section 5.2)

This section highlights the polarized views on the economic valuation of NBS, with some stakeholders emphasizing the need to recognize and measure nature's intrinsic values beyond economic metrics. The development of integrated assessments for biodiversity net-gain and the promotion of both monetary and non-monetary valuation methodologies are seen as essential for capturing the comprehensive benefits of NBS.

Recommendations:

- Develop Robust Valuation Frameworks: Encourage the adoption of diverse valuation methods that include qualitative and quantitative metrics to fully capture the multi-faceted benefits of NBS.

- Implement Educational Programs: Increase awareness of the importance and methodologies of NBS valuation among stakeholders to enhance their understanding and support for biodiversity conservation efforts.

Public Policy for NBS Implementation (Section 5.3)

The effective embedding of NBS within public policy frameworks is crucial for their widespread adoption. The multi-level, cross-sectoral development of these policies, informed by participatory processes, can ensure that NBS are integral to addressing climate change, biodiversity loss, and urban development challenges.

Recommendations:

- Integrate NBS in Urban Planning: Mandate the inclusion of NBS in urban and regional planning processes to enhance biodiversity and build climate resilience.

- Support with Incentives: Implement policy instruments that encourage the adoption and scaling of NBS, such as financial incentives, regulatory support, and public awareness campaigns.

Concluding Recommendations for Stakeholder Engagement

The transition to a nature-positive economy with NBS at its core requires concerted efforts across all sectors. By addressing the outlined issues through informed public policies, robust standards, and comprehensive educational initiatives, stakeholders can ensure the effective, equitable, and sustainable implementation of NBS. These efforts will not only mitigate environmental challenges but also enhance economic opportunities, fostering a resilient and thriving global ecosystem.

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Jonathan Garcia Amine Echtati Venu Borra Sami Bousri Harley Hermanson Shawn Chambers Brendan Cosso Ruy Campos Dugone Erik Valiquette, CCLP Chris Sunderman Virginia Mijes Martin Matthew Nelson