Water Finance and Nature-Based Solutions

In the new publication Water Finance and Nature-based Solutions, Rachel Cooper of the  Governance and Social Development Resource Centre (GSDRC) and John Matthews of the Alliance for Global Water Adaptation (AGWA) conducted a synthesis review of existing Nature-based Solutions (NbS) finance options in order to determine innovations for water finance that could be used to mainstream and expand NbS in developing countries. Additionally, the report examines some potential challenges and opportunities in NbS finance and provides global and regional examples of NbS finance mechanisms. The information contained in this paper is useful for those wishing to better understand and increase green or integrated green-grey infrastructure projects. 

Nature-based Solutions, such as green infrastructure, can be effective tools to simultaneously achieve multiple water management goals, such as source water protection, wetland restoration, and flood control. However, securing finance to implement NbS for water security can be difficult and pales in comparison to grey infrastructure investment. 

“We know that Nature-based Solutions could provide a third of the cost-effective climate change mitigation we need over the next decade, while helping reverse nature destruction, prevent poverty and enable communities to adapt and become more resilient. In truth it is probably far higher than 30%. But despite that, they attract just 3% of global climate funding and as little as 1% of water resources finance. It makes zero sense,” according to Minister Zac Goldsmith, the UK's Minister of State for the Pacific and the Environment.

The report is part of a series of Helpdesk Reports from K4D: Knowledge, Evidence and Learning for Development. More information at https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/15592