Available in the Climate journal, the newly published paper "Key Innovations in Financing Nature-Based Solutions for Coastal Adaptation" is a product of the collaborative work of REST-COAST members Fausto Favero and Jochen Hinkel of the Global Climate Forum (GCF).

The application of nature-based solutions (NBS) to address coastal climate change challenges is hindered by a well-documented lack of funding. Scholars propose that financial innovation could offer a remedy, particularly by attracting private investments. However, it remains uncertain how these innovative approaches tackle the specific obstacles in NBS implementation and whether they can be replicated across different locations given the unique local conditions of NBS. 

Hence, the REST-COAST paper examines this issue by analysing existing literature and case studies of innovative financial mechanisms utilised in NBS projects. It identifies the financial barriers these mechanisms address and explores the contextual factors influencing their effectiveness. 

The study concludes that there are no easy fixes for scaling up finance for NBS through financial innovation. Nonetheless, as NBS project sizes increase, data on NBS performance becomes more available, and supportive policy frameworks are established, innovative solutions are expected to become more accessible. Additionally, the involvement of both public (through risk reduction and regulation) and private actors (providing financial expertise) can further facilitate the flow of finance into NBS projects.

The full paper is available here.