Executive summary

The Global South is facing multiple crises, including climate change, biodiversity loss, and economic disparities, which disproportionately affect low- and middle-income countries (LMICs) (Bhargawa and Bhargava 2023; Bhonsle 2023). Nature-based solutions (NbS) offer a promising means to address these complex issues by leveraging ecosystems to mitigate climate change, enhance biodiversity, and support sustainable development (Seddon et al. 2022). NbS provide holistic approaches to tackling interconnected challenges such as environmental degradation, disaster risks, and economic instability (UNEP 2022a). They offer cost-effective, resilient solutions that also promote community well-being, especially in vulnerable regions in the Global South.

Despite the recognised potential of NbS to address these multifaceted challenges, they remain underutilised due to insufficient financing, inadequate policies, and a lack of technical capacity (Wadhawan and Bajpai 2024). Only 9 per cent of the total climate finance mobilised by developed nations has been channelled towards NbSrelated activities, making it difficult to achieve global biodiversity, mitigation, and land-degradation targets, particularly in the Global South (OECD 2023).

Our study finds that several barriers hinder the scaling and mainstreaming of NbS, especially in LMICs. First, the lack of standardised frameworks to measure NbS benefits limits evidence-based policymaking and private-sector investment (Wadhawan and Bajpai 2024). Second, private financing is constrained by investors’ focus on short-term gains, neglecting the long-term benefits of NbS (Gómez, Purata, and Rodríguez 2023). Additionally, national policies often fail to recognise the critical role of Indigenous and local communities (IPLCs) in NbS, limiting inclusive participation (Dawson et al. 2021; Sangha 2020; WWF 2021).

Scaling NbS in LMICs requires a multifaceted approach that involves building a supportive policy environment, unlocking both public and private investments, and ensuring inclusive governance. The G20 can play a critical role in shaping a conducive ecosystem for investments in NbS by fostering international cooperation and integrating nature finance into both national and global frameworks. Brazil’s G20 presidency offers a unique opportunity to advance these efforts, particularly by channelling financial flows towards NbS initiatives in the Global South.

To provide actionable insights for Nature-based Solutions (NbS) in the Global South, this brief incorporates a novel analysis focused on adapting existing frameworks to low- and middle-income country (LMIC) contexts. Building on the foundational work of IUCN, Conservation International, and CEEW, our study identifies region-specific NbS opportunities and quantifiable benefits tailored to LMIC ecosystems and socio-economic settings. We assessed financing needs and mapped potential policy gaps, enabling the development of targeted recommendations that support scalability and investment attractiveness for NbS initiatives. This approach bridges global NbS standards with localised needs, offering a refined pathway to drive policy and financial support for NbS in LMICs.

Key recommendations

• Adopt a unified framework for mapping NbS benefits: Develop a comprehensive framework for mapping and quantifying NbS benefits, adaptable to various ecosystems and contexts in LMICs. This would enable stakeholders to identify best practices, improve decision-making, and increase investments.
• Ensure inclusivity in national policies: National policies must actively engage Indigenous groups and vulnerable communities in decision-making processes, ensuring diversity and empowerment. This would foster livelihood generation, enhance social inclusion, make the sector more attractive to private investors.
• Enable public and private investments through innovative financing mechanisms: De-risk the NbS sector by promoting blended finance, green bonds, and risk-sharing facilities. Additionally, governments should incentivise nature-positive investments through carbon pricing mechanisms and credit schemes.
• Leverage G20’s role in mainstreaming finance for NbS: The G20 should prioritise high-quality, accessible finance for NbS in LMICs. It should also promote multilevel governance to facilitate direct financial flows to local communities, particularly in biodiversity-rich areas such as the Amazon.

By aligning human activities with nature, NbS can contribute to long-term resilience and sustainable growth.

NbS can reduce the intensity of climate change and weather hazards by at least 26% (IFRC and WWF 2022).