Research Paper

State of Finance for Nature in Cities 2023: Time to Assess - Summary for Local Policymakers

March 2, 2023

Current Themes

Climate Change & Resilience State & Local Finance

State of Finance for Nature - title page

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Overview

This publication by UNEP and the Penn Institute for Urban Research identifies critical financing gaps for nature-based solutions (NbS) in cities and highlights actions local governments, financial institutions, and private stakeholders can take to scale up investments, restructure governance, and align priorities to create more resilient, sustainable urban environments. Despite growing recognition of NbS as a cost-effective way to meet climate and biodiversity goals, they received only 0.3% of urban infrastructure spending in 2020. The report emphasizes the need for better coordination of NbS efforts across local governance, improved alignment of national and subnational priorities, and project criteria that integrate NbS from start to finish. With adequate technical and financial support, cities can effectively leverage NbS to drive sustainability and equity in urban development.

Key Message

Nature-based solutions can help cities become more resilient, healthy and equitable. But for urban nature to reach its full potential, investments need to be substantially scaled up. In 2020, NbS received just 0.3% of overall spending on urban infrastructure, and investments are unequally distributed across and within cities. With this publication, UNEP and the Penn Institute for Urban Research outline gaps and opportunities for NbS financing in cities, best practices from around the world, and actions that local governments, financial stakeholders, private sector and knowledge partners can take to scale up investments for nature in cities.