Nature-based solutions (NBS) to address societal challenges have been widely recognised and adopted by governments in climate change and biodiversity strategies. Nevertheless, significant barriers exist for the necessary large-scale implementation of NBS and market development is still in its infancy. This study presents findings from a systematic review of literature and a survey on private sector agents in the planning and implementation of NBS, with the aim to identify them. In this study, we propose a typology for organisations delivering NBS and a categorisation of their economic activities. The most common organisation type found is nature-based enterprise which offers products or services where nature is a core element and used sustainably and engages in economic activity. Moreover, eleven categories of economic activities were identified, ranging from ecosystem restoration, living green roofs, and eco-tourism to smart technologies and community engagement for NBS. Nature-based enterprises contribute to a diverse range of sustainable economic activities, that standard industry classification systems do not adequately account for. The recognition of the value created by these activities is essential for designing effective policy support measures, and for market development of the sector and its potential to facilitate the wider adoption of NBS.

Nature-based solutions (NBS) offer multiple solutions to urban challenges simultaneously, but realising funding for NBS remains a challenge. When the concept of NBS for societal challenges was first defined by the EC in 2017, financing was recognised as one of the major challenges to its mainstreaming. The complexity of NBS finance has its origin in the multiple benefits/stakeholders involved, which obscures the argument for both public and private sector investment. Since 2017, subsequent waves of EU research- and innovation-funded projects have substantially contributed to the knowledge base of funding and business models for NBS, particularly in the urban context. Collaborating and sharing knowledge through an EU Task Force, this first set of EU projects laid important knowledge foundations, reviewing existing literature, and compiling empirical evidence of different financing approaches and the business models that underpinned them. The second set of EU innovation actions advanced this knowledge base, developing and testing new implementation models, business model tools, and approaches. This paper presents the findings of these projects from a business model perspective to improve our understanding of the value propositions of NBS to support their mainstreaming.

Nature-based enterprises (NBEs) have recently emerged as important actors in the delivery of nature-based solutions (NBS) to societal challenges, but little is known about the context in which they operate and the factors influencing their development. The empirical research undertaken in this study provides a first insight into the most significant barriers and enablers nature-based enterprises face in their external environment. Findings were drawn from a review of literature triangulated with a survey of 148 nature-based enterprises and interviews with the founders/CEOs of 22 NBEs. Political factors were identified as the most significant external influence, with increased awareness and incorporation of NBS into relevant policies and economic instruments seen to play a significant role in market development. Conversely, policy inconsistencies and poorly designed public procurement approaches present significant challenges. Other key influencing factors relate to financing (both public and private), lack of industry standards and impact measurement. Industry networking and access to education, training and skill development emerged as key enablers, with university collaborations highly regarded. Further in-depth research is recommended to explore indications of disparities in the levels of awareness, financing, and skills gaps across different regions of Europe and different nature-based economic activities.