Nature-based solutions (NBS) offer multiple solutions to urban challenges simultaneously, but realising funding for NBS remains a challenge. When the concept of NBS for societal challenges was first defined by the EC in 2017, financing was recognised as one of the major challenges to its mainstreaming. The complexity of NBS finance has its origin in the multiple benefits/stakeholders involved, which obscures the argument for both public and private sector investment. Since 2017, subsequent waves of EU research- and innovation-funded projects have substantially contributed to the knowledge base of funding and business models for NBS, particularly in the urban context. Collaborating and sharing knowledge through an EU Task Force, this first set of EU projects laid important knowledge foundations, reviewing existing literature, and compiling empirical evidence of different financing approaches and the business models that underpinned them. The second set of EU innovation actions advanced this knowledge base, developing and testing new implementation models, business model tools, and approaches. This paper presents the findings of these projects from a business model perspective to improve our understanding of the value propositions of NBS to support their mainstreaming.

This paper proposes a conceptual framework to systematize the use of Nature-based solutions (NBS) by integrating their resilience potential into Natural Assurance Scheme (NAS), focusing on insurance value as corner stone for both awareness-raising and valuation. As such one of its core goal is to align research and pilot projects with infrastructure development constraints and priorities. Under NAS, the integrated contribution of natural infrastructure to Disaster Risk Reduction is valued in the context of an identified growing need for climate robust infrastructure. The potential of NAS benefits and trade-off are explored by through the alternative lens of Disaster Resilience Enhancement (DRE). Such a system requires a joint effort of specific knowledge transfer from research groups and stakeholders to potential future NAS developers and investors. We therefore match the knowledge gaps with operational stages of the development of NAS from a project designer perspective. We start by highlighting the key role of the insurance industry in incentivizing and assessing disaster and slow onset resilience enhancement strategies. In parallel we place the public sector as potential kick-starters in DRE initiatives through the existing initiatives and constraints of infrastructure procurement. Under this perspective the paper explores the required alignment of Integrated Water resources planning and Public investment systems. Ultimately this will provide the possibility for both planners and investors to design no regret NBS and mixed Grey-Green infrastructures systems. As resources and constraints are widely different between infrastructure development contexts, the framework does not provide explicit methodological choices but presents current limits of knowledge and know-how. In conclusion the paper underlines the potential of NAS to ease the infrastructure gap in water globally by stressing the advantages of investment in the protection, enhancement and restoration of natural capital as an effective climate change adaptation investment.

Water authorities search for new collaborations with nongovernmental actors, with the aim of facilitating societal initiatives. A comparative case study was conducted to analyze the value dilemmas faced by water authorities when they choose to facilitate and how they cope with these dilemmas. The study found that the most prevalent dilemma is between traditional democratic values and efficiency-related values. In the chosen solutions, the latter seem to prevail over the former. Casuistry, cycling and hybridization are common coping mechanisms. The study shows the potential of non-governmental initiatives in the water sector while also reflecting critically on dominant administrative values.

This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology induced frugal innovations' on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural micro-insurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to among others reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.

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