This toolbox supports the 2024 agenda of the G20 Sustainable Finance Working Group by showcasing case studies that highlight the use of blended finance to overcome investment barriers in Nature-based Solutions (NbS).
It explores the unique financing challenges associated with NbS, noting that their benefits often span multiple sectors making them difficult to monetize. Blended finance is highlighted as a crucial tool for de-risking investments in these sectors, using approaches like technical support, concessional capital and guarantees to drive private sector engagement.
By strategically using concessional capital and fostering an attractive regulatory environment, the report suggests that NbS can eventually develop into commercially viable investments that generate sustainable revenue flows and reduce dependency on public funding.