Nature-based solutions

Why it matters

There is strong evidence linking global warming and climate change to increasing risks for both ecosystems and human populations. Even if global temperature rise is limited to 1.5°C above 1990 levels, significant impacts are expected to persist. Natural ecosystems are vulnerable to these changes, while they also provide opportunities to advance remedial actions. Such actions, or nature-based solutions (NbS), can involve the protection, management and restoration so that they can contribute to effective climate action. NbS can be:

• Climate change mitigation-focussed: Natural ecosystems can store significant amounts of carbon in biomass and in soils as well as can help avoid carbon emissions, and effective interventions can harness these capabilities.
• Climate change adaptation-focussed: Natural ecosystems help communities adapt to climate hazards and build their resilience to climatic shocks by shielding them from loss of lives, livelihoods and infrastructures.

Definition

Our Nature-based Solutions portfolio supports actions that aim to protect, manage, and restore natural assets - including in both coastal and emerging urban contexts - by mobilizing and leveraging cross-sector financing mechanisms so that they can deliver sustainable and tangible benefits for people and the environment.

Our target group

We support underserved communities across Low- and Middle-Income Countries (LMICs) through tailored direct and indirect financing to specific nature-positive initiatives and entrepreneurial solutions that advance climate action. Over the last few years, we have developed a Coastal Resilience niche that focusses on communities vulnerable to climatic hazards in coastal zones, recognizing the powerful role that coastal ecosystems play in increasing resilience to climatic hazards. Building on this approach, we are expanding into additional niches, including an emerging focus on Urban Nature-based Solutions, to extend our support to climate action initiatives in cities while maintaining our core approach.

Areas of support

We promote nature-based initiatives across coastal and, more recently, urban ecosystems that leverage innovative financing mechanisms to protect, manage, and restore natural assets. These initiatives must be designed to be both financially and operationally self-sustainable in the foreseeable future, while delivering strong social outcomes and contributing meaningfully to climate action.

Targets

We support projects that aim to generate impact on these dimensions:

• Number of people reached
• Number of people with improved resilience
• Number of organisations improved
• Financial assets mobilised
• Environmental impact (tCO₂ avoided/removed, km² of land area protected, managed or restored)