Challenges of Nature-Based Solutions

Amid today’s overlapping economic, social, and environmental crises, more emphasis is being placed on Nature-based Solutions (NbS)—a holistic approach that restores and leverages ecosystems to tackle climate change while delivering economic and social benefits. Unlike the narrow view of “just planting trees,” NbS encompasses systemic measures such as protecting mangroves, developing sponge cities, or restoring peatlands—actions that simultaneously absorb carbon, safeguard communities, and strengthen resilience. According to the latest World Bank data, between 2012 and 2024 nearly 250 NbS projects were financed, already benefiting 9.5 million people and restoring 1.1 million hectares of ecosystems. Ongoing projects are expected to expand that impact to 19.4 million people and 3.5 million hectares of restored land. Globally, NbS could provide up to 37% of the climate mitigation needed to achieve the Paris Agreement’s goals by 2030.

NBS AS A HOPE FOR BUSINESS AND SOCIETY

Many industries—from agriculture to energy and infrastructure—rely directly on natural resources. As these resources become increasingly scarce, businesses are under pressure to shift from extraction to regeneration. NbS offers a way forward: reducing emissions by preventing deforestation, capturing carbon through reforestation and afforestation, and redesigning systems to work with ecosystems rather than against them. Crucially, NbS is not just about climate. Its co-benefits extend to food and water security, disaster protection, and community well-being, making it integral to any sustainable growth pathway. As The Economist notes, NbS is present in nearly every credible mitigation strategy because of its ability to connect environmental, social, and economic resilience.

CHALLENGES OF NBS ADOPTION

NbS is encouraged by the regulatory system and market mechanisms, such as the trade of NbS carbon credits for carbon offsetting and other climate goals. Various firms develop or invest in NbS initiatives, as it is one way that can assist them in reducing greenhouse gas emissions and achieving a net-zero goal. Due to the difficulty in assessing the monetary value and the effects on ecosystems, projects that applied the NbS offered benefits that fell short of their promise and were susceptible to "greenwashing." Therefore, it is necessary to establish rigorous, evidence-based carbon accounting and monitoring procedures to assure the availability of high-quality carbon credits to meet market needs and achieve actual climate and social consequences. The Economist notes that there is currently no perfect methodology; however, "perfection should not be the enemy of good.”

A lack of coherence in regulations and incentives investment hinders the capacity to attract private funding and investment for nature-based solutions. As such, multisectoral efforts to continuously improve accounting standards are needed. The policymakers must invest in adaptive institutional capacity and enabling frameworks for successful and sustainable implementation and management of NbS efforts. There is an urgent need to scale up the use of NbS. With major criticism of its ambiguity and potential for greenwashing, it remains crucial for government, corporations, and civil society to maximize NbS' capacity to address climate change-related challenges.

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