Coastal communities all around the world are threatened by the consequences of climate change. Nature-Based Solutions (NBS) can play an important role in improving coastal resilience, through such means as mangrove restoration, for example. This will better protect riverbanks, improve natural habitats for animals, increase capture carbon and improve local livelihoods. NBS will often outperform hard or grey infrastructure options for coastal protection in terms of economic benefits.

What are the obstacles?

The successful implementation of NBS projects requires innovative financing approaches and adaptive management. To investigate the preconditions for financing NBS in developing countries, the Netherlands Enterprise Agency commissioned Wolfs Company – now part of Impact House – to carry out a study. In this study, we looked at the obstacles to NBS funding in institutional and legal frameworks, public procurement procedures, immature markets, and financial viability of projects.

How do we do it?

We also developed a business case to illustrate how you could use a mixture of financing structures to make NBS attractive to private investors. We looked at the potential for Blue Carbon Credits (CO2 storage by mangroves) in combination with different public and private financing approaches for a coastal protection project. The study addressed the challenges of developing a mature market, but also found a lot of potential for NBS when it came to improving coastal resilience.