Unlocking Innovative Financial Pathways for Large-Scale Coastal Restoration

Abstract

This project examines the critical role of private finance in scaling nature-based solutions (NbS) for reef restoration, specifically addressing the vast funding disparities highlighted by the underinvestment in SDG 14 'Life Below Water.' Despite NbS's significant potential for coastal protection, private sector contributions remain a minor fraction of overall G20 NbS funding. Through a comprehensive literature review, a global database, case studies, and key informant interviews, this study investigates the barriers and enablers affecting private investments in coastal and reef restoration both in the U.S. and globally. Significant challenges identified include proving return on investment (ROI), complexities in success measurement, and permitting and regulatory hurdles. Conversely, key enablers such as innovative financing mechanisms, corporate social responsibility, and public-private partnerships underscore the emerging role of the private sector. The findings advocate for enhanced private sector engagement through strategic recommendations aimed at overcoming identified barriers and capitalizing on enablers to foster substantial investments in reef restoration, ultimately supporting global ecological and economic stability.