Going Beyond Market-Based Mechanisms to Finance Nature-Based Solutions and Foster Sustainable Futures

This article examines the importance of addressing the climate and biodiversity crises for human well-being and global equality. It highlights the growing interest in scaling up nature-based solutions (NbS) as a means to tackle these challenges. However, there are concerns that the concept of NbS is being disconnected from the social and economic factors driving these crises. The article emphasizes the risk of greenwashing due to the excessive focus on market-based mechanisms and economic growth, which may undermine the effectiveness of NbS. The limitations and pitfalls of relying solely on natural capital markets to finance the scaling up of NbS are discussed, stressing the need for complementary funding mechanisms. Market-based mechanisms present governance challenges and can reinforce power imbalances. 

The article proposes four recommendations to ensure that finance mechanisms for biodiversity and NbS promote justice, equity, and environmental sustainability. It emphasizes the need to prioritize reducing emissions from fossil fuel use and shift focus from GDP growth to human and ecological well-being. The article highlights the dependency of economies on the biosphere and calls for greater recognition of the importance of ecosystems and biodiversity. It argues that NbS should not distract from addressing the underlying drivers of biodiversity loss and climate change.