This study builds upon the findings of Te Hakapupu | Pleasant River Catchment Flooding Hazards – Feasibility Study of Nature-based Solutions, and other recent analysis of NbS use in New Zealand, funded by the Ministry for the Environment’s Essential Freshwater Fund.
The Nature-based Solutions Funding and Finance Pathways identified five core Nature-based Solutions funding and finance approaches that are used internationally to channel investment into nature, that can be accessed in New Zealand.
- Government Investment - Funding Nature-based Solutions using government budgets, government-administered grants and nature-positive subsidies
- Nature-based Giving - Working with not-for-profit organisations, high-net-worth individuals, and businesses to fund Nature-based Solutions through grants, donations, and local partnerships
- Nature-based Debt Finance - Working with banks, businesses and non-governmental organisations to finance Nature-based Solutions by providing sustainable lending facilities, like green bonds
- Natural Assets and Infrastructure - Working with government agencies and private infrastructure providers to build Nature-based Solutions alongside infrastructure to address environmental challenges
- Nature-based Credit Markets - Funding Nature-based Solutions by participating in nature-based credit markets and receiving revenue form removing carbon and improving biodiversity
Each approach was evaluated for its applicability in New Zealand, exploring case study examples of where the approach has been used and how the market segment is developing.
To help Otago Regional Council and its partners move from opportunity to implementation, Boffa Miskell developed an investment decision pathways framework and a Nature-based Solutions typology register. These tools help identify which investment approaches may be most suitable for different project types, locations, attributes and benefits.
The report also introduced the INSPIRE Framework, developed by the World Economic Forum alongside the IUCN Global Standard for Nature-based Solutions, to support asset managers in identifying opportunities, structuring investments and scaling solutions. By integrating Nature-based Solutions into asset management portfolios, regional councils can consider them alongside traditional “grey” infrastructure approaches when responding to environmental challenges.
This work provides Otago Regional Council and its partners with a strategic, evidence-based and partnership-driven approach to unlocking new funding pathways; supporting long-term environmental, social and economic benefits for the region
