Natural infrastructure is a cost-effective solution to meeting many of our infrastructure needs, particularly those related to water, such as the provision of clean drinking water, flood protection, stormwater management, and climate change adaptation. Natural infrastructure encompasses preserved, restored, and engineered ecosystems, and it harnesses the power of nature to support human well-being through ecosystem services.
Mobilizing capital for natural infrastructure projects is critical for their wider implementation. Historically, public funding from government agencies—such as funds dedicated to support restoration or agricultural best management practices—has been the largest source of capital for natural infrastructure. Nevertheless, commercial financing and private investments are emerging as promising sources of capital for natural infrastructure projects.
This report by the International Institute for Sustainable Development showcases how private capital can help finance natural infrastructure to meet our water needs, the factors that go into financing decisions, and the benefits from the investments.
