Different financing strategies
Although municipal administrations already have the competences to plan, finance and implement infrastructure projects through traditional approaches, the adoption of alternative financial strategies encourage the participation of private sector in sharing costs and gains, risks and benefits, encompasses additional uncertainties for the cities. Financing strategies for NBS focus on potential municipal finance innovation pathways, ranging from attracting additional capital investments for public projects to encouraging private sector implementation of NBS. Based on the role of the municipality and the nature of its interaction with the private sector, the analysis of ~30 identified financial mechanisms has suggested their distinction into five broad groups.
Innovative municipal financing approaches
A municipality is primarily responsible for financing NBS, however, a range of alternative options of raising funds for NBS projects and programmes are explored
Public-private partnerships
PPPs define different modalities of long-term contracts between a private and a public party for providing public assets or services
Mandatory requirements and tax initiatives
Municipal administration could enforce regulatory frameworks of a mandatory character requiring private actors to bear the costs of implementing NBS according to pre-established policy objectives
Incentive programmes
Municipal administration is mostly responsible for creating or enabling a regulatory framework in which private actors can develop and implement NBS projects. The use of soft regulations tends to be the norm in such frameworks, with the use of economic and informational incentives.
Municipal Funds
Municipal funds could be used to encourage NBS projects that are implemented by local businesses, residents, housing associations and other relevant private profit and non-profit entities
UNaLab Financing Webinar
Within the frame of the UNaLab Buddy System webinar series we have invited leading experts in the area of NBS financing to share their knowledge and expertise. Listen in!
The webinar is starting from minute 5.
Learning Material
REPORT: Business Models and Financing Strategies
Full report including examples of business models for selected NBS, as well as potential financing strategies that could support NBS implementation and operation efforts.
Financing Options Inspiration Cards
All financing options in the form of individual inspiration cards for use in workshops or brainstorming sessions (available in English and Spanish)