Unlocking Finance for Nature-based Solutions (NbS) in Indian Cities
Executive Summary
Nature-based Solutions (NbS) are increasingly recognized as a critical pathway for addressing the intertwined challenges of climate change, biodiversity loss, and sustainable development (Ghaedi, Santos and Monteiro, 2026). Across the world, governments, businesses, and financial institutions are focusing on leveraging natural ecosystems to strengthen urban resilience and create more livable cities (World Bank, 2026; UNDP, 2025).
Recognizing this potential, the previous report, Unlocking Finance for Nature-based Solutions in Indian Cities, examined India’s financing and policy landscape for urban NbS. The report found that while India has supportive national- and state-level policies/schemes to enhance private finance for urban NbS, many promising financing and business mechanisms/instruments remain underutilized, fragmented, and insufficient to support long-term implementation and maintenance (Wadhawan and Bajpai, 2024).
This report builds on that foundation and shifts the focus to understanding the essential elements of developing an investable NbS that works in practice. Through nine case studies from across India, this report examines how different financial and business mechanisms/instruments have been operationalized, the institutional arrangements that enabled implementation, the challenges encountered, and the lessons that can inform future investments.
