What is Nature-Based Solutions?

What is Nature-Based Solutions?

Nature-based solutions (NbS) are strategies that leverage natural ecosystems and ecological processes to address societal challenges—particularly climate change adaptation, disaster risk reduction, and biodiversity loss. The IUCN defines NbS as actions to protect, sustainably manage, and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits. Examples range from urban green infrastructure and wetland restoration to mangrove conservation and regenerative agriculture.

Why It Matters

Global spending on nature-based solutions reached approximately $154 billion annually by 2024, yet the UN Environment Programme estimates this figure needs to triple by 2030 to meet climate, biodiversity, and land degradation targets. The gap between current investment and what's needed represents both a risk and an opportunity for organizations operating in climate-exposed sectors.

For corporations, NbS offers a dual value proposition. On the adaptation side, restored wetlands can reduce flood damages by up to 29% in coastal communities according to a 2020 study published in Scientific Reports. Green roofs and urban forests lower ambient temperatures by 2–8°C during heat events, cutting cooling energy demand by 25% or more. These aren't theoretical benefits—cities like Philadelphia have saved an estimated $6 billion in avoided stormwater infrastructure costs through green infrastructure programs.

On the mitigation side, NbS can deliver roughly 37% of the cost-effective CO₂ mitigation needed through 2030 to hold warming below 2°C, according to research from The Nature Conservancy. Mangrove forests sequester carbon at rates three to five times higher than terrestrial forests per unit area. Peatland restoration in Southeast Asia alone could prevent gigatons of emissions from degraded organic soils.

Regulatory momentum is accelerating adoption. The EU Biodiversity Strategy for 2030, the Kunming-Montreal Global Biodiversity Framework, and the TNFD reporting framework all position nature-based approaches as central to corporate climate strategy. Companies that treat NbS as peripheral risk falling behind disclosure expectations and missing cost-effective resilience investments.

How It Works / Key Components

Nature-based solutions operate across a spectrum from preservation of intact ecosystems to engineered hybrid systems that combine grey and green infrastructure. The European Commission categorizes NbS into three types: minimal intervention (protecting existing ecosystems), managed ecosystems (sustainable agriculture, managed forests), and designed ecosystems (constructed wetlands, green roofs, bioswales).

Implementation typically begins with a landscape-level assessment identifying where natural systems can substitute for or complement engineered infrastructure. A coastal municipality evaluating flood protection, for example, might compare the lifecycle costs of a seawall ($15,000–$45,000 per linear meter) against oyster reef and salt marsh restoration ($3,000–$15,000 per linear meter) that provides equivalent wave attenuation while also supporting fisheries and carbon sequestration.

Monitoring and adaptive management distinguish credible NbS from greenwashing. The IUCN Global Standard for NbS, published in 2020, establishes eight criteria covering biodiversity outcomes, economic viability, inclusive governance, and adaptive management. Projects must demonstrate net positive outcomes for both people and ecosystems through transparent measurement frameworks. Remote sensing, eDNA sampling, and hydrological modeling provide the data backbone for performance verification.

Financing mechanisms have matured considerably. Green bonds, biodiversity credits, carbon credits from verified NbS projects (under standards like Verra's VCS or Gold Standard), and blended finance structures now channel capital into nature-based investments. The World Bank's $25 billion commitment to climate finance increasingly directs funding toward NbS, and sovereign debt-for-nature swaps—like Ecuador's $1.6 billion deal in 2023—demonstrate growing institutional appetite.

Council Fire's Approach

Council Fire works with clients to integrate nature-based solutions into climate adaptation plans, carbon strategies, and ESG reporting frameworks. Our approach starts with spatial risk analysis overlaying physical climate hazards with ecosystem service potential, identifying where NbS investments deliver the highest risk-reduction and co-benefit returns. We support project design, help clients navigate carbon and biodiversity credit markets, and ensure NbS commitments meet the IUCN Global Standard and align with TNFD and CSRD disclosure requirements.

Frequently Asked Questions

How do nature-based solutions compare to traditional infrastructure in cost-effectiveness?

NbS typically delivers equivalent or superior performance at 50–75% of the lifecycle cost of grey infrastructure for flood management, stormwater treatment, and coastal protection. A U.S. Army Corps of Engineers analysis found that natural and nature-based features provided coastal protection benefits at roughly one-tenth the cost per unit of risk reduction compared to structural alternatives. However, NbS often requires more upfront planning and longer establishment periods, and performance may vary with climate conditions. Hybrid approaches combining green and grey infrastructure frequently offer the best risk-adjusted returns.

Can nature-based solutions generate carbon credits?

Yes. NbS projects—including afforestation, reforestation, wetland restoration, mangrove conservation, and improved forest management—are eligible for carbon credit issuance under major standards like Verra VCS, Gold Standard, and the American Carbon Registry. However, crediting methodologies have faced scrutiny over additionality, permanence, and baseline inflation. High-integrity NbS credits increasingly require conservative baselines, buffer pools for reversal risk, and third-party verification. Prices for verified NbS credits range from $5 to $50+ per ton depending on co-benefits and certification rigor.

What reporting frameworks require disclosure of nature-based solutions?

The TNFD framework explicitly addresses nature-related dependencies and impacts, making NbS strategies directly relevant to TNFD-aligned disclosure. The CSRD and its European Sustainability Reporting Standards (ESRS) include biodiversity and ecosystem metrics where NbS activities would be reported. CDP's forests and water security questionnaires capture NbS-related data. The Science Based Targets Network (SBTN) also requires companies to set nature targets that often involve NbS interventions. As these frameworks converge, companies with documented NbS programs will be better positioned for compliance.