Resilient by Nature: Increasing Private Sector Uptake of Nature-based Solutions for Climate-resilient Infrastructure: A Market Assessment for Latin America and the Caribbean
Climate change is one of the greatest challenges facing humanity affecting our ability to deliver energy, transport, logistics, water, sanitation, and communications services. Investment for climate-resilient infrastructure is at the core of the IDB Groups agenda. In particular, nature-based Solutions (NbS) are a cost-effective way to build infrastructure resilient to climate change while delivering societal benefits. As many LAC governments and businesses are unaware of the opportunities and cost-efficiencies of NbS, setting out the business case for these solutions is an important first step to build support and secure funding. This Market Assessment examines how NbS can contribute to climate-resilient infrastructure through the protection, management, and restoration of natural capital. It examines existing barriers and the opportunities to increase private sector use of NbS focusing on the role of policy in NbS uptake; awareness, governance, and capacity; technical tools and skills to deliver NbS; and finance and funding. It provides recommendations for infrastructure project developers and operators, financial institutions, and policymakers to create a more enabling environment for NbS in LAC.