A successful proposal will support the development of policies, business models and market conditions to scale up and speed up the implementation of nature-based solutions (NBS)^[1]. It will contribute to the wider deployment of NBS and to fully reaping their economic, employment, social and environmental benefits in order to build a competitive sustainability in Europe and to tackle climate change. NBS contribute to the EU biodiversity strategy for 2030 and other Green Deal priorities, by supporting biodiversity and vital ecosystem services: climate change mitigation and enhancement of carbon sinks, biomass provision, access to fresh water, clean soil, healthy diets and lifestyles and sustainable food systems. NBS deployment will also create green jobs and build resilience to climate change and natural disasters.

Successful proposals will contribute to all following expected outcomes:

• Better understanding of the economic and financial performance of NBS, contributing to a greater promotion of investments in NBS and to an acceleration of market uptake.
• NBS markets are further developed and better structured.
• Actors involved in NBS markets are better equipped to conduct cost-benefit analysis and monetisation of NBS, and to address their funding needs, for greater implementation of NBS, including ecosystem-based disaster risk reduction approaches.
• NBS business cases are strengthened, contributing to greater adoption of NBS and awareness of their benefits.
• Regional and Europe-wide advisory services are equipped with better tools and create multi-stakeholder networks to more effectively support NBS project development and investment vehicles.
• Informing Mission Adaptation to Climate Change, the EU Adaptation Strategy and the EU Taxonomy on Sustainable Finance.
• Assess potential skill gaps and devise trainings to tackle this skill shortage

Developing markets for NBS has proved a continuing challenge. NBS investments are many and varied, with their benefits and costs differing by project type and context. They produce a range of benefits, many of which are public goods with limited revenue streams that may accrue to different stakeholder groups. Detailed understanding of these benefits is lacking. The same is true for potential economic benefits resulting from avoidance or reduction of costs due to NBS intervention (such as those related to insurance, penalty or capital costs). In addition, the variety of NBS and their context-specific nature across urban, periurban and rural realms, makes it difficult to predict reliably their commercial prospects. These features make financing of NBS projects challenging and investment from the private sector particularly so. As a result, funding of NBS has typically focused on a narrow range of public sources. Addressing knowledge gaps about the economic and financial performance of NBS investments, in combination with trialling the development of business cases and models for NBS implementation^[2] is particularly urgent in the current context where NBS need to be exponentially scaled up to meet the policy priorities of the European Green Deal. Despite growing interest in NBS, upscaling NBS investment would require better understanding of different return on investment (ROI) models while accounting for indirect revenue streams associated with NBS (e.g. lower insurance costs for local government from investment in flood defences). The successful proposal should:

• Provide guidance for project developers and decision makers to take informed decisions about NBS: e.g. comparison of strengths and weaknesses of green and grey solutions in climate change adaptation; cost-benefit assessments for NBS (including both the initial capital investment and maintenance stage); resilience and insurance values of NBS; assessment of other co-benefits of NBS, including non-monetary ones. Synergies should be considered with the dedicated topic HORIZON-CL6-2021-BIODIV-01-06: Nature-based solutions, prevention and reduction of risks and the insurance sector;
• Analyse the potential for development of specific demand and supply chains in NBS;
• Provide methodological guidance on assembling NBS business cases, applying a Total Economic Value framework, of practical use to practitioners in making the case for NBS investments;
• Develop a coaching programme on NBS readiness assistance where businesses and projects selected for Investment Readiness Assistance receive coaching packages tailored specifically to their readiness levels and business objectives to advance the maturity of projects, taking also into account skill gaps;
• Create new or assess, streamline and provide access to existing toolboxes to support regional needs related to NBS financing and implementation; Consider the diversification of financing arrangements and mixes: co-financing and benefit sharing options with the private sector; PPPs; innovative financing mechanisms; and innovative arrangements, e.g. to involve and compensate the land owners who provide the space for NBS implementation;
• Assess the impacts and opportunities for NBS associated with the EU Taxonomy on Sustainable Finance and support the practical implementation of the Taxonomy by stakeholders;
• Analyse innovative financing approaches, including NBS ‘green bonds’ and blended finance at appropriate levels (e.g. European cities), while considering synergies with the European Investment Bank and any other relevant actors;
• Identify the potential for private investment in different NBS typologies and identify the critical conditions/actions necessary for upscaling, including research related needs. Provide a strategy for greater finance mobilisation through, for example, a NBS investment community or marketplace where potential project partners, entrepreneurs, investors, and innovation stakeholders can meet to discuss and advance investment in NBS;
• Identify and analyse case studies of multiple-benefit, co-governance/co-ownership projects with participation of the private sector, exploring their costs and benefits, analysing their financing strategies and identifying critical success factors;
• Explore synergies and interconnection of different EU initiatives (such as INTERREG, LEADER, URBACT, Covenant of Mayors, etc.) in terms of financing and potential for more coordinated actions and aggregated impact on NBS;
• Develop additional training and tailored courses, networking and B2B matchmaking sessions and other relevant events.

Proposals should address all of the above points.

This topic should involve the effective contribution of SSH disciplines.

Collaboration with the Biodiversity Partnership ^[3] (HORIZON-CL6-2021-BIODIV-02-01) is expected in the context of reinforcing the knowledge base for assessing, developing and deploying nature-based solutions.

Applicants should create synergies with projects under the same topic and other relevant ongoing or up-coming projects, notably the Horizon 2020 NBS project portfolio and its task forces; HORIZON-CL6-2021-BIODIV-01-06: Nature-based solutions, prevention and reduction of risks and the insurance sector; HORIZON-CL6-2022-BIODIV-01-03: Network for nature: multi-stakeholder dialogue platform to promote nature-based solutions; HORIZON-CL6-2022-COMMUNITIES-01-05: Assessing the socio-politics of nature-based solutions for more inclusive and resilient communities; HORIZON-CL6-2022-COMMUNITIES-02-02-two-stage: Developing nature-based therapy for health and well-being; HORIZON-CL6-2021-COMMUNITIES-01-06: Inside and outside: educational innovation with nature-based solutions.

To this end, proposals should include dedicated tasks and appropriate resources for coordination measures, foresee joint activities and joint deliverables.

Proposals should ensure that all evidence, information and project outputs are accessible through the Oppla portal (the EU repository for NBS)^[4].

[1] As defined by the European Commission: Solutions that are inspired and supported by nature, which are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more, and more diverse, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systemic interventions. Hence, nature-based solutions must benefit biodiversity and support the delivery of a range of ecosystem services. In https://ec.europa.eu/research/environment/index.cfm?pg=nbs.

[2] The socio-political and cultural aspects of NBS are, in turn, the focus of HORIZON-CL6-2022-COMMUNITIES-01-05: Assessing the socio-politics of nature-based solutions for more inclusive and resilient communities.

[3] https://www.biodiversa.org/1759

[4] https://oppla.eu/.