Nature Positive: Financing the Transition in Cities

Cities are the world’s economic hubs, contributing 80% of global GDP, but close to half (44%) of that contribution is at risk because of nature loss. This global economic threat underscores the significance of urban nature finance as a key enabler to unlock global prosperity and resilience while safeguarding cities and their inhabitants.

Despite the critical role of biodiversity and ecosystems in mitigating nature-related risks, only 0.3% of global urban infrastructure spending is allocated to nature-based solutions. Our analysis of development finance for urban development shows that only 10% of total MDB-approved project finance is spent on projects with nature considerations. Investment in urban nature has decreased between 2018 and 2023.

Current investment and governance mechanisms fail to reflect nature's societal value. Nature provides essential services such as clean air, water, climate regulation and biodiversity, alongside cultural and recreational benefits that underpin human health, well-being and economic stability. Yet, only 37% of the world's 500 most populous cities have specific strategies in place to sustainably manage and protect nature.

Expanding nature-positive action through innovative governance and financing models presents a significant opportunity.