Supporting the economy with nature-based solutions

A white bridge in a green forest
New paper shows NbS stand out as transformative pathways to sustainable economic recovery.

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With negotiations over nature finance heating up in Cali at COP16, the spotlight is firmly on solutions that can support biodiversity whilst also bringing economic benefits. Among these, nature-based solutions (NbS) are emerging as promising pathways to genuinely sustainable economic recovery. Our new research published this week, shows how NbS have the potential to drive job creation, boost income, as well as contribute to Sustainable Development Goals, making them essential in the discussions at COP16.

“Nature’s value is often overlooked in accounting frameworks, yet our study highlights its tremendous economic benefits. At a time when global systems are under strain and the planet is warming, nature-based solutions offer a vital opportunity to boost the resilience of ecosystems—and the economies that depend on them.” Prof Nathalie Seddon, Smith School of Enterprise and the Environment and Department of Biology, University of Oxford.

What are nature-based solutions (NbS)?

NbS encompass actions that protect, restore, and manage ecosystems to address societal challenges, benefiting both biodiversity and communities locally. Carefully implemented, they offer a holistic approach to issues like climate change, biodiversity loss, and socioeconomic inequalities, aligning well with the goals of a just transition that negotiators are pushing for at COP16.

The COVID-19 pandemic has underscored the need for recovery strategies that integrate nature at their core. NbS can also help in recovering from other shocks, such as natural disasters and conflicts, by restoring degraded landscapes, supporting displaced communities, and rebuilding infrastructure. Despite these advantages, NbS remain underused in economic recovery plans due to misconceptions about their viability, short-term policy focus, and gaps in evidence.

To address this knowledge gap, the new study led by Alex Chausson conducted a systematic review of 66 reviews on the economic impact of investments in nature.

Research findings: how NbS can support economic recovery

This latest analysis offers robust evidence of the economic recovery benefits of NbS, with findings falling into several key themes:

Positive economic impacts: The research reviewed 66 studies and found that 65% of economic outcomes from NbS initiatives were positive, particularly in nature-based agriculture and ecosystem management. Compared to traditional approaches, NbS often delivered equal or better results.

Broader societal benefits: Beyond economic returns, NbS contribute to climate resilience, food security, and community empowerment. These wider benefits are crucial for stabilising economies, making them a vital part of the negotiations at COP16.

Mixed and context-dependent outcomes: While the majority of results were positive, some varied based on reliance on subsidies, regional differences, and market conditions. This underscores the importance of tailored, well-designed NbS that align with local realities—an approach with strong support at COP16.

Trade-offs and win-wins: Both trade-offs and win-win scenarios were observed. For instance, while short-term resource extraction conflicts with biodiversity goals, agroecological practices can simultaneously boost crop yields, soil health, and income. Integrating community involvement is key to achieving equitable outcomes.

Knowledge gaps and biases: The evidence is currently skewed towards certain sectors, like food production, with limited research on NbS in Europe, North America, and the Middle East. Filling these gaps should be a focus of further research.

Policy recommendations

To maximise the potential of NbS, COP16 negotiators and policymakers should consider the following:

  1. Integrate NbS into economic recovery programmes
    Governments should include NbS in recovery strategies, aligning fiscal policies with sustainable development goals. Interventions must be tailored to local contexts, a core message at COP16.
  2. Focus on high-integrity NbS
    All NbS should follow best practices, such as the IUCN Global Standard, ensuring community involvement and demonstrable biodiversity benefits. This is essential for minimising trade-offs and is central to the discussions in Cali.
  3. Establish robust monitoring and evaluation
    Effective national frameworks are needed to monitor the impacts of NbS on jobs, income, ecosystem health, and social benefits, ensuring transparent, adaptive management—one of the primary goals outlined at COP16.
  4. Broaden economic assessments
    Policymakers should adopt comprehensive analyses that consider not only immediate gains but also long-term benefits like ecosystem services, food security, and disaster risk reduction. Such holistic approaches are a key focus in Cali.
  5. Promote local ownership and inclusive governance
    Successful NbS require community engagement and local leadership, integrating Indigenous knowledge and ensuring that benefits are shared equitably. This emphasis on inclusivity is central to the equity discussions at COP16.
  6. Strengthen capacity building
    Investments in education and training are critical to equipping communities with the skills needed to design, implement, and maintain NbS, creating high-quality jobs and driving eco-innovation—objectives that align with the just transition theme at COP16.
  7. Enhance research and collaboration
    Collaborative research should focus on filling evidence gaps, particularly around job security and economic growth. Partnerships among practitioners, economists, and local communities are being encouraged at COP16 to drive informed action.
  8. Align NbS with broader sustainable development goals
    NbS should be embedded in circular economy policies, ensuring that economic growth supports both people and nature. Policymakers must balance trade-offs and win-wins, ensuring equitable development and sustainability—an overarching goal of the COP16 agenda.

Conclusion

Nature-based solutions represent a transformative opportunity for economic recovery that incorporates sustainable development goals and delivers genuine long-term benefits. Aligning fiscal policies to support high-integrity NbS, in line with the recommendations in this briefing, will help governments transition to a circular economy that sustains rather than undermines the health of the biosphere on which our societies depend.

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Read the paper: Harnessing nature-based solutions for economic recovery: A systematic review