Money talks. A systems perspective on funding and financing barriers to nature-based solutions

Lieke M. Hüsken , Jill H. Slinger , Heleen S.I. Vreugdenhil , Mónica A. Altamirano
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Abstract

A financing gap is seen as a crucial barrier, hampering the further uptake and upscaling of Nature-based Solutions (NbS). However, it is not always clear what is meant by this, nor is it clear why this barrier exists and persists. The aim of this paper is to generate an enhanced understanding of financial barriers to NbS. This is accomplished through first conceptually and theoretically clarifying the difference between funding and financing and then exploring these through an integrative literature review. We expose three different dimensions of financial barriers in NbS projects, namely the occurrence of multiple types of funding gaps, the occurrence of multiple types of financing gaps, and the particular and complex cost structures of NbS. NbS funding gaps can be broken down into public funding gaps, private funding gaps, and funding gaps specific for lifecycle phases, activities, and cost types. Bridging the funding gap is a necessary (although not sufficient) condition for bridging the finance gap and financing alone cannot solve a funding problem. We further find that these different dimensions of financial barriers can be explained by the misalignment between the characteristics of NbS and the characteristics of our existing institutions. These misalignments occur through different institutional mechanism, including (i) Funders’ preferences, (ii) Revenue generation enablers, (iii) Justification requirements, (iv) Funders’ regimes, (v) Financiers’ preferences and (vi) Finance application processes. All mechanisms influence the occurrence of public and private funding and financing gaps and they influence the cost structure of NbS, in particular transaction costs. The results of this analysis suggest that overcoming NbS funding and financing challenges requires a systemic, multi-level approach as the barriers to project implementation are not all located within a project's sphere of influence or control.

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有钱能使鬼推磨从系统的角度看基于自然的解决方案的资金和融资障碍
资金缺口被视为一个关键障碍,阻碍了基于自然的解决方案(NbS)的进一步采用和升级。然而,人们并不总是清楚这是什么意思,也不清楚为什么这种障碍存在和持续存在。本文的目的是增强对国家统计局的金融障碍的理解。这是通过首先在概念上和理论上澄清资助和融资之间的区别,然后通过综合文献综述来探索这些差异来实现的。我们揭示了国家统计局项目资金障碍的三个不同维度,即多类型资金缺口的出现、多类型资金缺口的出现以及国家统计局特殊而复杂的成本结构。国家统计局的资金缺口可以分为公共资金缺口、私人资金缺口和特定于生命周期阶段、活动和成本类型的资金缺口。填补资金缺口是填补资金缺口的必要条件(尽管不是充分条件),单靠融资不能解决资金问题。我们进一步发现,这些不同维度的金融壁垒可以用国家统计局的特征与我们现有机构的特征之间的不一致来解释。这些失调是通过不同的体制机制发生的,包括(i)出资人的偏好,(ii)产生收入的促成因素,(iii)证明要求,(iv)出资人的制度,(v)出资人的偏好和(vi)融资申请流程。所有机制都会影响公共和私人资金和融资缺口的出现,并影响国家统计局的成本结构,特别是交易成本。这一分析的结果表明,克服国家统计局的资金和融资挑战需要一个系统的、多层次的方法,因为项目实施的障碍并不都位于项目的影响或控制范围内。
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