Natural Climate Solutions Funding Study
This global study analyzes funding needs, gaps, and opportunities for natural climate solutions across ten countries with high mitigation potential. It highlights the dominance of public funding, the scale of unmet finance, and the roles of policy reform, carbon markets, and nature‑positive economies in accelerating NCS implementation.
Subject Tags
- Natural climate solutions
- Climate mitigation
- Carbon markets
- Policy, Finance, and Markets
- Policy
Overview
The Natural Climate Solutions Funding Study (2023) examines how ten countries with high mitigation potential can scale natural climate solutions (NCS) through more effective and expanded funding. The report finds that while NCS could deliver up to one‑third of global climate mitigation, current funding is dramatically insufficient—on average, countries face gaps nearly 20× larger than existing NCS finance. Public funding remains the dominant driver of NCS investment, but inefficiencies, limited catalytic capital, and underdeveloped carbon markets constrain progress.
The study analyzes five major funding buckets—public finance, international aid, private finance, carbon markets, and philanthropy—and identifies where each country can unlock new or more effective funding flows. Opportunities include redirecting harmful subsidies, strengthening sustainable supply chains, designing robust carbon markets, and mobilizing early‑stage capital for “shovel‑ready” NCS projects. The findings aim to guide governments, NGOs, and private actors in accelerating NCS implementation and closing the global funding gap.