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.

This paper proposes a conceptual framework to systematize the use of Nature-based solutions (NBS) by integrating their resilience potential into Natural Assurance Scheme (NAS), focusing on insurance value as corner stone for both awareness-raising and valuation. As such one of its core goal is to align research and pilot projects with infrastructure development constraints and priorities. Under NAS, the integrated contribution of natural infrastructure to Disaster Risk Reduction is valued in the context of an identified growing need for climate robust infrastructure. The potential of NAS benefits and trade-off are explored by through the alternative lens of Disaster Resilience Enhancement (DRE). Such a system requires a joint effort of specific knowledge transfer from research groups and stakeholders to potential future NAS developers and investors. We therefore match the knowledge gaps with operational stages of the development of NAS from a project designer perspective. We start by highlighting the key role of the insurance industry in incentivizing and assessing disaster and slow onset resilience enhancement strategies. In parallel we place the public sector as potential kick-starters in DRE initiatives through the existing initiatives and constraints of infrastructure procurement. Under this perspective the paper explores the required alignment of Integrated Water resources planning and Public investment systems. Ultimately this will provide the possibility for both planners and investors to design no regret NBS and mixed Grey-Green infrastructures systems. As resources and constraints are widely different between infrastructure development contexts, the framework does not provide explicit methodological choices but presents current limits of knowledge and know-how. In conclusion the paper underlines the potential of NAS to ease the infrastructure gap in water globally by stressing the advantages of investment in the protection, enhancement and restoration of natural capital as an effective climate change adaptation investment.

Nature-based solutions (NBS) are increasingly being considered as an option to reduce societies’ vulnerability to natural hazards, creating co-benefits while protecting ecosystem services in a context of changing climate patterns with more frequent and extreme weather events. The reinsurance and insurance industries are increasingly cited as sectors that can play a role to help manage risks, by improving disaster risk reduction (DRR) and loss prevention. This paper investigates how the (re)insurance industry could support the transition from a paradigm focused on ex-post responses to ex-ante risk reduction measures including NBS, in line with the Sendai Framework. This paper presents the results of a series of 61 interviews undertaken with the (re)insurance sector and related actors under the EU H2020 Nature Insurance Value Assessment and Demonstration (NAIAD) project. Methods based on a Grounded Theory approach indicate how this sector can play different roles in loss prevention, including ecosystem-based disaster risk reduction (eco-DRR). Results illustrate how the (re)insurance industry, under these roles, is gradually innovating by having a better understanding of hazards and mitigation. The findings of the study contribute to wider discussions such as the possibility of new arrangements like natural insurance schemes and evidence-based assessment of avoided damage costs from green protective measures, in Europe and beyond.

Hydropower has been increasingly seen as a two-fold solution to the provision of renewable energy and water storage. However, the massive deployment of both large and small scale hydropower projects has been reported to cause important environmental impacts at the basin scale. This study assesses the differential contributions to regional energy and water security of large (LHP) and small (SHP) scale hydropower deployment in the Spanish Duero basin, as well as associated cumulative environmental impacts. This is performed through a selection of indicators measured in absolute and relative terms. The results suggest that LHP deployment contributes more to energy and water security, performing better in 10 of the 12 indicators. It also shows higher absolute environmental impacts on flow regime and habitat loss. Meanwhile, when analyzed in relative terms, SHP shows greater impacts in all categories as a result of cumulative effects cascading along the rivers system. These findings suggest that optimizing the use of existing hydropower infrastructure would be beneficial for energy, water and environmental security. This could be implemented by substantially reducing the number of low capacity plants with almost no impact on final energy generation, while enhancing the pumping and storage potential of higher capacity plants.

Designing sustainable management strategies in groundwater-dependent socio-economic systems in areas with scarce water resources and protected wetlands is a challenging issue. The high vulnerability of these systems to droughts will be exacerbated even further under future climate change (CC) and socio-economic scenarios. A novel integrated bottom-up/top-down approach is used to identify "climate resilient pathways", from which to co-design adaptation strategies to reduce the impact of potential future CC and socio-economic scenarios. The approach followed two steps (1) the generation of local CC and socio-economic scenarios by downscaling global/regional climate models and (2) the identification and assessment of potential adaptation strategies through an iterative bottom-up/top-down approach. Top-down assessments of the impact of CC have been undertaken by propagating local scenarios within a chain of mathematical models based on expert criteria/assumptions. This allowed us to analyse of the physical vulnerability of the system under different potential CC and socio-economic scenarios by simulating them with a sequential modelling of rainfall-recharge, agriculture, and hydrological processes through a distributed groundwater finite difference model. These model results were discussed with the stakeholders at a first workshop, which aimed to identify potential adaptation strategies. The influence of the adaptation strategies on the future hydrological status was assessed by simulating them through the chain of models. These results were the inputs into the discussions at a second workshop, which aimed to validate and/or improve the results of the first workshop. The methodology was applied in the Upper Guadiana River Basin, where there is a long-standing conflict between wetland conservation and groundwater overexploitation for intensive agriculture. The future horizon 2016-2045 is analysed with the scenarios compatible with the emission scenario RCP4.5. The research has allowed us to conclude that groundwater pumping reduction would be the most robust and effective measure to reduce the impact of CC in the area.

This paper discusses the gradual eclipse of a water management paradigms governed by the dominance of hydropower and irrigation driven development. With the advent of new additional values, that former approach has given way to the acknowledgement of the intangible values of water for its contribution to the landscape, among other things. The European Water Framework Directive has lent further impetus for changes in water management and governance. Future water authorities and stakeholders will face additional management challenges such as growing water scarcity, climate change and the predominant role of regional governments in water use negotiation and decision-making.