Report

Financing for Natural Infrastructure Projects

Viable pathways to scale up natural infrastructure investments on the Canadian Prairies

Insights on how private capital can finance natural infrastructure to meet our water needs, including an assessment of applicability of the finance instruments to the Canadian Prairies region.

  • Private capital can help finance natural infrastructure to meet our water needs. Mobilizing capital for natural infrastructure projects is critical for their wider implementation.

  • Diverse partnerships between government, private, and Indigenous stakeholders and rightsholders are critical in making successful investments in natural infrastructure.

  • Private investors are considering support of the natural infrastructure sector through mechanisms such as carbon and biodiversity credits, outcomes-based financing, and natural asset companies.

Natural infrastructure is a cost-effective solution to meeting many of our infrastructure needs, particularly those related to water, such as the provision of clean drinking water, flood protection, stormwater management, and climate change adaptation. Natural infrastructure encompasses preserved, restored, and engineered ecosystems, and it harnesses the power of nature to support human well-being through ecosystem services.

Mobilizing capital for natural infrastructure projects is critical for their wider implementation. Historically, public funding from government agencies—such as funds dedicated to support restoration or agricultural best management practices—has been the largest source of capital for natural infrastructure. Nevertheless, commercial financing and private investments are emerging as promising sources of capital for natural infrastructure projects.

This report showcases how private capital can help finance natural infrastructure to meet our water needs, the factors that go into financing decisions, and the benefits from the investments.

Private capital can help finance natural infrastructure to meet our water needs. Mobilizing capital for natural infrastructure projects is critical for their wider implementation.

Report details

Topic
Infrastructure
Nature
Water
Focus area
Climate
Economies
Resources
Publisher
IISD
Copyright
IISD, 2024