Business Models for Financing Nature-Based Solutions in Urban Climate Action

This resource from UNEP Copenhagen Climate Centre offers a comprehensive guide to financing and developing business models for Nature-based Solutions (NbS) in urban climate action, with a focus on cities in developing countries. It explains how NbS can address climate adaptation and mitigation challenges while delivering social, economic, and environmental co-benefits. The publication covers governance frameworks, stakeholder engagement strategies, and cost-benefit analysis, alongside detailed financing options—public, private, blended—and innovative mechanisms such as sustainability bonds, public-private partnerships, Payments for Ecosystem Services, and insurance schemes. Practical business model canvases illustrate solutions for urban heat mitigation, flood and drought management, coastal protection, carbon sequestration, and energy efficiency in buildings. Designed for city planners, policymakers, investors, NGOs, and businesses, this resource provides actionable insights to overcome financing barriers and scale NbS through replicable, bankable models that enhance climate resilience and sustainable urban development.

This publication was produced under the Implementation of urban nature-based solutions for mitigation and adaptation project, developed by the UNEP Copenhagen Climate Centre and funded by the Ministry of Foreign Affairs of Denmark (Danida).