Task Force 3: Finance and Business Models (for NbS) in a Nature-Positive Economy

Task Force 3 focuses on NbS finance, investment mechanisms and business models from the perspective of co-creation and co-finance.

1. Integrated policy and regulation change to stimulate investment in NbS

  • Integrated policy and regulation change to stimulate and increase investment in NbS, including leveraging public investments, encouraging private sector involvement and encourage public-private partnerships.
  • Identifying current gaps within investment policies and practices, such as the lack of financial incentives for green/NbS investments
  • Integrating standards and taskforce insights to align NbS initiatives with global financial and environmental reporting standards.

2. Research, Technology and Implementation Advancement

  • Increased investment and support for NbS research, including piloting and broader technology uptake, especially for impact measurement.
  • Increased buy-in and piloting of NbS-related actions to achieve socio-economic, health, and wellbeing impacts.

3. Economic and Entrepreneurial Development

  • Fostering green business, entrepreneurial and investment opportunities and employment through NbS.
  • Promoting nature-based entrepreneurship and advancing a nature-positive economy within the European Union.
  • Developing compelling business cases to attract further funding, leveraging insights from TNFD (Taskforce on Nature-related Financial Disclosures) and other relevant frameworks.

4. Market Integration and Finance Mobilisation

  • Mobilising finance from various sources for NbS projects.
  • Integrating NbS into market mechanisms and economic planning at various scales.

Key activities: The Task Force comprises of six working clusters that are led by, contributed to and reviewed by representatives of different projects. Each cluster will agree on its specific focus together with its contributors, define their agenda and timing and identify output formats for their work. Working clusters include:

  • Developing investable NbS propositions at scale (large-scale NbS or cluster of NbS) for different types of investors with differing governance/implementation and financing modes modes . Activities in 2021: 

    • Consultation/feedback on the EIB study: assessment of access-to-finance conditions for innovative Nature-based Solutions

    • Atlas of financial mechanisms: inventory of mechanisms applicable to different regions and NbS.  

  • Towards a nature-based economy which unites demand and supply side of NbS (NbS enterprises). Envisaged output: report compiling project work so far including case studies and policy recommendations to be presented during the Connecting Nature Nature-based Enterprise Summit in June 2021.

  • Essential elements of the NbS business case. Output: compiling business models developed in the different H2020 NbS projects in a special edition of the journal "Business Strategy and Environment", work in progress.

  • Valuation of NbS co-benefits to address the missing market value of NbS, and the valuation /quantification of non-monetary benefits, such as social impacts of NbS and thus, stimulate private sector investment and business uptake of NbS.

  • NbS and insurance. Envisaged output: compiling existing resources (i.e. policy documents, etc.) from H2020 NbS projects (NAIAD, etc.) in a report or paper (still to be defined).

  • Spatial and urban planning frameworks as enablers for NbS, including collaboration and alignment with TF6 (co-creation) which is working on a similar topic to avoid overlap and duplication.

Task Force 3 workstreams:

  • Theme 1: Mapping of Financing instruments and business models
  • Theme 2: Economic valuation of benefits of NbS
  • Theme 3: Policy and regulation impacting on financing of NbS
  • Theme 4: Activating business engagement in the nature-positive economy
  • Theme 5: The role of technology / FinTech in increasing investment in nature  
  • Theme 6: Engaging citizens in the NPE to influence consumer behaviour, political decisions, financing and investment in NbS
  • Theme 7: Exploring opportunities for synergies with broader climate change and biodiversity initiatives in relation to financing and investment in nature