Why Nature-Based Projects Are Attracting More Attention

Climate and nature are connected

Forests, wetlands, grasslands, mangroves and other ecosystems influence carbon storage, water cycles, soil health, disaster risk and local livelihoods. As organisations build climate strategies, many are recognising that emissions cannot be considered separately from the ecosystems on which economies depend.

Nature-based Solutions are broadly understood as actions that protect, sustainably manage or restore ecosystems while addressing societal challenges and providing benefits for people and biodiversity. This is important: a tree-planting activity is not automatically a strong nature-based solution. Quality depends on ecological fit, social outcomes, governance and long-term management.

Nature projects can create multiple forms of value

A well-designed restoration project may improve carbon sequestration, biodiversity, watershed function, local employment and resilience to floods or drought. This ability to produce multiple benefits makes nature projects attractive to a range of stakeholders, including governments, development institutions, corporates, impact investors and philanthropic funders.

However, multiple benefits also make measurement more complex. Project developers need to identify which outcomes matter, select suitable indicators and avoid claiming impacts that are not supported by evidence.

The financing gap remains large

UNEP has repeatedly highlighted the scale of the gap between current investment in nature-based solutions and the finance needed to meet global climate, biodiversity and land-restoration goals. This gap creates both urgency and opportunity: projects that can demonstrate strong ecological outcomes, credible governance and a realistic financial model may be well positioned for new sources of capital.

Standards are becoming more important

As interest grows, so does the need for quality frameworks. The IUCN Global Standard for Nature-based Solutions provides criteria for designing and assessing projects in a way that considers societal challenges, biodiversity, economic feasibility, inclusive governance, trade-offs and adaptive management.

For project developers, frameworks like this are useful even when certification is not required. They provide a structured way to test whether the project is solving the right problem and whether the design is resilient enough to deliver over time.

Where the opportunity is emerging

Potential areas include forest and landscape restoration, sustainable agriculture, watershed protection, mangroves and coastal resilience, biodiversity conservation, regenerative land use and natural infrastructure for cities. The strongest opportunities are likely to be those where the environmental outcomes and the economic or social value reinforce one another.