Closing the Nature Financing Gap Through Water: Key Insights from the Webinar

Key Discussion Points

The panel opened with insights from recently published reports, The Economics of Water: Valuing the Hydrological Cycle as a Global Common Good and The essential drop to reach Net-Zero: Unpacking Freshwater's Role in Climate Change Mitigation, highlighting freshwater’s critical role in climate mitigation. The discussion addressed practical mechanisms to ensure water-centric solutions achieve measurable benefits across climate, biodiversity, and land systems.

Speakers examined how financial mechanisms, such as the Climate Bond Initiative and criteria for water infrastructure investment, can mobilise funding. The role of major funds like the Green Climate Fund (GCF) and Global Environment Facility (GEF) was also discussed, with insights into how water-focused initiatives can access these resources.
Other contributions highlighted the potential of biodiversity and wetland restoration for mitigation, the success of diplomatic efforts in integrating water into global negotiations, and the economic case for valuing freshwater ecosystems in climate action.
 

Key Takeaways

1. Standards and regulatory frameworks can drive investment in water-related nature-based solutions, but stronger policy alignment and flexible financial instruments are needed to scale up impact.
    
2. Breaking silos between climate, biodiversity, and land management policies is essential. Water must be seen not just as a resource but as a driver of carbon sequestration and resilience.
    
3. Capacity building, knowledge-sharing, and institutional support are critical to translating global finance into real, on-the-ground impact.

As we look ahead to 2025, it is clear that integrating water into climate finance strategies will be crucial in meeting global targets. Collaboration between financial institutions, policymakers, and practitioners will be key to unlocking the full potential of nature-based solutions.