Expanding Finance for Nature-Based Solutions to Achieve Climate, Environment, and Community Goals: An Introduction for Green Banks and Community Lenders

Abstract

Nature-based solutions are actions to protect, manage, or restore natural or modified ecosystems that address societal challenges, simultaneously benefiting people and nature. There has been unprecedented recent government investment in nature-based solutions through programs funded by the Inflation Reduction Act and Bipartisan Infrastructure Law, but there remains a need for scaled-up financing of these projects in the United States. This need presents an opportunity to leverage green banks'—and other similar financial service providers like community development financial institutions'—financing capabilities. This document lays out a vision that describes why nature-based solutions are relevant and important to green banks' and community development financial institutions' climate- and community-driven missions, and what types of projects these institutions might support.