Nature-Based Solutions in Latin America and the Caribbean: Financing Mechanisms for Replication
The Latin America and the Caribbean (LAC) region is grappling with pandemic-related recessions, severe economic and social impacts from climate change, and inadequate and outdated infrastructure. LAC’s infrastructure needs are estimated to be between $179 billion and $313 billion annually. Nature-based solutions (NBS) offer a cost-effective pathway to drive inclusive economic growth, buffer communities against the impacts of climate change, and increase the resilience of LAC’s infrastructure investments.
NBS face a significant investment gap — public and philanthropic sources alone do not meet the need. To fully realize the potential of NBS, the private sector will need to contribute financially. Fortunately, the pool of green finance, private sector funds earmarked for environmental and climate-related investments, is rapidly growing. New financing models can leverage these traditional funding sources with the growing financial commitments for nature from the private sector, unlocking billions of dollars earmarked for green investments.
To adopt these strategies and support investment in NBS, LAC will need new partnerships to build relationships among diverse actors, additional science and proof of concept, stronger governance and more capacity, dedicated and consistent funding streams, and more robust policies that prioritize NBS.