FINESSE

Nature-based solutions (NbS) offer many advantages: they enhance biodiversity, can help capture carbon and contribute to natural coastal protection. However, it remains a challenge to translate these ecosystem services into a financial model that helps investors assess whether an investment is worthwhile.

The FINESSE project aims to change this. The project partners are developing a new financial model that not only takes into account the costs and services, but also the impact of these NbS. This requires scientifically substantiated data on the real benefits and ecosystem services that these solutions offer.

Coastbusters FINESSE is developing a financial framework for NbS in coastal and marine areas. This framework combines the ecological benefits and economic opportunities (eco-engineering perspective) with the investor perspective. It combines the functions and benefits linked to the value capture of NbS with the risks, returns and impact that financing organisations consider desirable.

This framework will consist of:

• An integrated value model;
• A project financing instrument;
• Evidence-based impact monitoring.

With this approach, the partners aim to enable the financing and implementation of NbS on a larger scale, including through public-private partnerships. The project will focus on three key benefits of such NbS:

• coastal protection and sediment stabilisation;
• carbon and nutrient flows; and
• biodiversity.

The FINESSE framework revolves around an integrated value model that will be built by setting up:

• (1) a qualitative model that analyses the functions, benefits and beneficiaries of NbS for coastal and marine areas in relation to their governance and financing arrangements. In other words: what benefits do NbS provide, who receives them and how do they fit into existing policy and financing frameworks;
• (2) a quantitative model to assess the risk, return and impact of such NbS. In other words: how can risk, return and impact of NbS be measured and translated into an impact index?

The different models are brought together in one integrated value model. This model will help to determine impact indicators and develop a financing instrument. This will allow for better monitoring of NbS projects in coastal and marine areas and to find the most appropriate financing structures, taking into account the specific challenges, stakeholders and beneficiaries involved.

Coastbusters FINESSE aims to better value, manage and integrate biogenic reefs (natural structures such as mussel and oyster beds) into coastal protection and marine restoration strategies. By developing a common language between the financial sector and eco-engineers, the partners aim for a broad implementation of NbS as an effective solution for global climate and environmental problems.