Nature-Based Solutions (NbS) for climate change adaptation

Nature-Based Solutions (NbS) for adaptation to climate change are gaining growing recognition and importance globally, and Latin America and the Caribbean are no exception. Its immediate future is very promising, driven by the urgent need to find cost-effective and multifunctional adaptation strategies.

Immediate Future of Nature-Based Solutions (NbS) for Climate Change Adaptation

The immediate future of NbS in Latin America and the Caribbean is characterized by greater integration, scalability, and the search for innovative financing mechanisms. They are expected to consolidate themselves as a key piece in national and subnational adaptation strategies.

Key trends and features:

1. Greater recognition and integration into policies: NbS are increasingly being incorporated into the country’s climate change adaptation plans (NDCs), as well as into local laws and policies on land use, risk management and sustainable development. The aim is to move from isolated projects to systemic integration.
2. Multisectoral approach: The implementation of NbS will expand beyond traditional environmental conservation, encompassing sectors such as agriculture, urban planning, infrastructure, health and water management.
3. Emphasis on co-creation and local knowledge: The importance of involving local communities, indigenous peoples and Afro-descendants in the design and implementation of NbS, valuing their traditional knowledge and ensuring that solutions are culturally appropriate and sustainable will be further recognized.
4. Development of indicators and metrics: There will be a greater effort to develop robust frameworks to measure the effectiveness and co-benefits of NbS (not only environmental, but also social and economic), which will facilitate their justification and access to financing.
5. Innovation in implementation: We will see more projects that combine NbS with "grey" infrastructure (traditional engineering) to achieve more resilient and cost-effective solutions ("green-grey" infrastructure). Innovative solutions such as adaptation based on coastal and marine ecosystems will also be explored.
6. Increased private sector investment: Although public financing is crucial, the private sector is expected to increase its participation, driven by understanding climate risks to their operations and identifying investment opportunities in nature.

Examples of Nature-Based Solutions relevant to the region:

3. Restoration and protection of forest ecosystems: Reforestation, sustainable forest management, prevention of deforestation. This helps with carbon sequestration, water regulation, landslide prevention, and biodiversity conservation.
4. Sustainable watershed management: Restoration of riverbanks, conservation of wetlands and moorlands, improvement of vegetation cover in areas of water recharge to ensure water supply and quality and reduce the risk of floods and droughts.
5. Urban green infrastructure: Creation of urban parks, green roofs, rain gardens, ecological corridors and urban tree management to reduce the heat island effect, improve air quality, manage rainwater and increase soil permeability.
6. Conservation and restoration of coastal and marine ecosystems: Mangroves, coral reefs, sand dunes, and seagrasses act as natural barriers against sea level rise, storm surges, and coastal erosion, as well as protecting marine biodiversity.
7. Sustainable agriculture and livestock: Practices such as agroforestry, conservation agriculture and integrated pest and disease management that improve soil health, crop resilience, food security, and carbon sequestration.
8. Wetland management: Restoration of swamps, marshes, and swamps for water regulation, natural purification, biodiversity conservation, and flood mitigation.

Most Relevant Sources of Financing for NbS in Latin America and the Caribbean

Financing is one of the biggest challenges for large-scale implementation of NbS. Sources are diverse and often require a clever combination of them:

 * International Climate Funds:

Green Climate Fund (GCF): It is the main multilateral climate finance mechanism and has supported several NbS projects in the region.

Adaptation Fund (AF): Focused specifically on adaptation, it is an important source for community and local NbS projects.

Global Environment Facility (GEF): Supports projects that address biodiversity, climate change, and land degradation, often with a strong NbS component.

Germany's International Climate Initiative (IKI): Finances climate and biodiversity protection projects in developing and emerging countries, including many NbS.

* Multilateral Development Banks (MDBs):

Inter-American Development Bank (IDB): It has significantly increased its portfolio of NbS projects and offers loans, technical assistance, and grant financing.

CAF - Development Bank of Latin America and the Caribbean: A key player in the financing of green infrastructure and NbS in the region.

World Bank: Through its various funds and programs, it supports climate resilience projects that incorporate NbS.

Central American Bank for Economic Integration (CABEI): Relevant to Central America.

Caribbean Development Bank (CBD): Important for the Caribbean.

 * Bilateral Cooperation:

Cooperation agencies from countries such as Germany (GIZ, KfW), Norway, Sweden, the Netherlands, the United Kingdom, France (AFD) and the United States (USAID), which allocate funds for sustainable development and climate action projects, including NbS.

 * Private Sector and Impact Investments:

1. Green and Sustainable Bonds: Financial instruments that raise capital for projects with environmental and social benefits. They are gaining traction in the region, issued by both governments and companies.
2. Impact Investment Funds: Venture capital and other funds that seek not only financial returns, but also measurable positive impacts on the environment and society.
3. Payment for Environmental Services (PES) Schemes: Mechanisms in which beneficiaries of ecosystem services (e.g., clean water) pay those who conserve or restore them (e.g., forest owners in watersheds). Although they have existed for some time, their application to adaptation is growing.
4. Corporate investment: Companies that invest in NbS as part of their Corporate Social Responsibility (CSR) strategies, mitigation of climate risks in their value chain or compliance with sustainability goals (e.g. water companies investing in watershed protection).

* National and Subnational Funds:

1. Public budgets: As NbS are integrated into planning, national and local governments allocate funds from their budgets for projects.
2. National Climate Funds: Some countries have established their own funds to channel resources towards climate action.
3. Environmental taxes and fees: In some cases, levies or fees may be established for the use of natural resources or for pollution, the proceeds of which go to conservation and adaptation projects.

Non-Governmental Organizations (NGOs) and Philanthropy:

1. The Nature Conservancy (TNC)
2. Conservation International (CI)
3. WWF
4. IUCN
5. philanthropic foundations (Bezos Fund, Bill & Melinda Gates Foundation)

These organizations play a crucial role in funding, implementing, and mobilizing resources for NbS. The key challenge is to mobilize the scale of investment needed, which is significantly greater than the current flow. To this end, it is essential to improve project preparation, create favorable regulatory frameworks, and foster strategic alliances between the public, private and civil society sectors.