Innovation in Financing of Nature-based Solutions
Three phases of financing nature-based solutions have been identified as:
1.Financing the planning of nature-based solutions.
2.Financing capital investment in nature-based solutions:
3.Financing ongoing operational costs
However, the reality is that too often the focus is on financing the capital investment costs of nature-based solutions with not enough consideration going into planning long-term sustainable business models to secure a return on investment. Horizon Nua’s founder Siobhan, as part of her research work with Trinity College Dublin in the Connecting Nature project, has customised the well-known business model canvas tool specifically to help plan the business models for nature-based solutions. These resources were co-developed and tested by Trinity College Dublin with the frontrunner cities in 2018 and 2019 and were used as the workshop resource in each of the fast follower cities delivered by Horizon Nua.
The Business Model Canvas for Nature-based Solutions workshop runs over 2 days in the host city and includes a visit to the site of the proposed NbS and a rigorous analysis on the societal challenges being addressed before even embarking on the business modelling! Once we tackle the business model canvas, each element of the canvas is considered from an economic, environmental and social perspective. Tradeoffs and the impact on biodiversity are also tackled. What emerges is a solid framework from which to identify the actions required to develop the business model for the individual exemplar.
Horizon Nua continues to work with each city to shape an action plan and then through a series of quarterly reflexive monitoring calls we track progress on identifying financing and governance structures for their exemplar and agreeing key actions at each stage
SPOTLIGHT - Nicosia - Innovations in finance of their Nature-based Solutions
Nicosia’s Green Network has secured €8.5m of the €17m in capital funding for 5 of the 8 parks of their NbS exemplar. The most accessible source of funding for urban projects in the Municipalities of Greater Nicosia is and will be EU funding.
However in the case of Ayios Dimitrios Park an opportunity for partnership between the municipality, the neighbouring English (private) school and the local Makarios Children’s Hospital at the edge of the park to cooperate on the redevelopment of the park has arisen. Discussions continue, facilitated by ANEL (Connecting Nature partner) and would mark a first in terms of public private partnership and will encompass a contribution of funds from the Health Department towards the park which is used a lot by patients and their families.
ANEL has together with city municipalities created a highly innovative strategy to develop and fund the 200+ pocket parks that have been earmarked for the many vacant and derelict sites in the city centre. Home to many large multinationals and corporations, ANEL has developed a strategy to target the CSR programmes of these companies to fund the development and maintenance of pocket parks near their offices. The redeveloped pocket parks will be co-designed with local communities and be open to communities and employees alike. The call for the pocket park programme opened in November /Dec 2021. Each Municipality will manage its own call but all operate to the same guidelines.
Each park is expected to cost in the region of €10-15K and a partnership commitment to maintain the pocket park beyond the initial 1- 2 years is expected for the stewardship phase between the community, corporate business and city. The first Adopt a Park contract was signed at the end of 2021 between the Strovolos Municipality and FML Ship Management Ltd.
These innovations were explored in detail and actions designed to progress these initiatives during the Business Modelling Workshops and follow up monitoring calls with Horizon Nua.
Interested in something similar for your city? Contact us to arrange a call.