Are "nature-based solutions" economically viable?

Nature-based solutions: a profitable investment still underutilized

In its 2023 annual report, the United Nations Environment Programme (UNEP) sounds the alarm: more than $500 billion is needed to adequately fund nature-based solutions (NBS) globally. Currently, the public sector provides most of the financing, while private investors remain on the sidelines.

Yet the numbers make a compelling case for these projects. The study reveals that 83 analyzed solutions, covering 1,588 hectares, generated ecosystem services valued at €639 million—far exceeding the €225 million invested. The ratio speaks for itself: €2.80 in benefits for every euro spent.

Flood protection: the economic driver

Flood control alone accounts for 92% of the total monetary value of assessed ecosystem services. The damage caused by flooding to urban infrastructure, roads, and agricultural land runs into millions of euros, making prevention particularly cost-effective.

Other benefits—habitat improvement, pollutant removal, and social and cultural advantages—were not included in the calculations due to lack of data and monetization models. Their inclusion would likely have further strengthened the projects' economic performance.

The Bolzano example: when nature protects the city

In Bolzano, Italy, an artificial lake was created in an urban park on former agricultural land. The results: reduced exposure to heat waves, nearly 292 tons of CO2 sequestered, and a 63% improvement in stormwater retention. Some 3,500 people and infrastructure valued at over €5 million are now protected from flooding.

The benefits, estimated at approximately €6 million, far exceed the project's total cost of €1.8 million—enough to convince private investors that nature-based solutions are much more than an ecological gamble.