Panelists:

• Annick Gillard-Bailetti (Plan International)
• Faby Anne Gagné-Mimeault (Canada Research Chair in Ecological Economics, University of Quebec)
• Bernard Kpanoga Kolombia (Canada Research Chair in Ecological Economics, University of Quebec)
• Edoardo Carlucci (IISD)

Annick emphasized the need to rethink financing frameworks by incorporating Indigenous knowledge, land rights, and equity-focused approaches. She shared practical examples of innovative funding, such as Reaching Communities England which funds local organizations through community grants, emphasizing that these mechanisms empower grassroots organizations in the Global South. She also pointed to instances where ecosystems have been granted legal personhood, such as New Zealand, where rivers and ecosystems are recognized as entities with rights. She urged for a shift in thinking about nature’s value, moving away from a purely monetary perspective and toward an approach that respects the intrinsic worth of ecosystems.

“We need to move away from designing systems that put a price on nature and instead focus on integrating equity and respect for nature into financing frameworks. It’s about recognizing the inherent rights of ecosystems, not just their extractive value.”

Faby Anne emphasized the need to expand financial mechanisms for nature-based solutions, stating that universal solutions are insufficient. She stressed the need for hybrid financing approaches that address both the biodiversity and climate crises, as well as the necessity to involve local communities in the process. She also introduced the concept of results-based investments, where funding is tied to measurable outcomes, which can provide long-term incentives for sustainability. She emphasized that each project or ecosystem requires specific financial tools, whether carbon capture, ecosystem management, or community-led conservation initiatives. By focusing on tailored solutions, financing can be more effective in addressing each context’s unique challenges and opportunities.

“There’s no one-size-fits-all solution. Tailored approaches are key to ensuring that financing aligns with local and global priorities.”

Bernard added to the discussion by focusing on incorporating non-market ecosystem services into financing frameworks. He explained that because it’s difficult to price the services that ecosystems provide directly, methodologies like contingent valuation are used, where the value of an ecosystem is estimated through surveys or discussions with local communities. This approach, he stated, can help integrate the real value of NbS into markets. Bernard also discussed how governments can support these efforts by regulating prices and incentivizing private investors to invest in NbS. He spoke about the important role of microfinance, especially in developing countries, where small-scale community funds can be used for NbS projects like reforestation or water management. Bernard argued that such mechanisms allow local communities to mobilize their own resources and take control of their environmental futures. These tools are crucial in scaling up NbS projects while ensuring local ownership and involvement.

“Microfinance and community funds are vital tools for financing NbS in developing countries, enabling local populations to lead reforestation and other projects.”

Edoardo addressed the complex issue of commodifying nature. He warned about the potential risks of turning ecosystems into financial products and emphasized the importance of not reducing nature’s value to mere economic terms. He emphasized that while monetizing the benefits of preserving ecosystems is essential for attracting investment, the process should not come at the expense of the communities that have historically managed and protected these lands. Edoardo called for methodologies that prevent the misuse of NbS while fostering community-driven conservation efforts. He highlighted the necessity of considering land ownership when financing NbS, as many of these interventions require long-term management and access to land by local communities. Edoardo stressed that land should remain a public resource rather than being exclusively privatized for financial gain, insisting that local communities must retain the right to manage and benefit from natural resources.

“It’s important to provide the monetary value of preserving rainforests and biodiversity to counter the economic incentives of replacing them with palm oil plantations. Land ownership must be considered to ensure nature remains a public space, accessible to local communities, and owned by them.”

Conclusion

The NAbSA Dialogue on “Financing Nature-based Solutions” brought together diverse perspectives on how to unlock the financial potential of NbS while ensuring they align with community needs and environmental sustainability. From Annick’s focus on Indigenous rights and equity to Faby Anne’s call for tailored, hybrid financing approaches, the panel emphasized that NbS financing must be adaptable, inclusive, and community driven. Bernard’s insights on microfinance and contingent valuation, along with Edoardo’s caution against the commodification of nature, highlighted the importance of maintaining a balance between financial incentives and the ethical considerations of NbS.

This dialogue also marked the closing of the NAbSA Dialogues series, which has provided a platform for exploring the interconnectedness of biodiversity, gender, policy, and livelihoods within climate adaptation. The insights shared by the panelists will contribute to developing actionable strategies for scaling up NbS funding and ensuring that these solutions deliver tangible benefits for both people and the planet.

Explore the full recording of the dialogue for deeper insights and actionable recommendations.