Conceptual and Operational Integration of Governance, Financing, and Business Models for Urban Nature-Based Solutions

Abstract

Governance, financing, and business models are deeply interlinked and relevant for the successful implementation of urban nature-based solutions (NBS). However, during the definition of urban NBS projects the importance and interrelation of these models are usually neglected. To overcome this limitation, this paper presents an overarching framework (conceptual and operational) and a derived preselection web tool which interrelate governance, financing, and business models for NBS projects. First, based on recent literature, governance, financing, and business models that could be applied to NBS were mapped, and their integration proposed. Later, key contextual factors influencing NBS implementation were identified. They form the basis of a WHAT–WHO–HOW framework that structures the links between specific NBS projects, their implementation context, and the most suitable models. From that framework, and an analysis of 50 successful NBS case studies, a suitability matrix was developed with known models. The matrix allows pairing types of NBS and their initiating actors with suitable financing and governance models. Lastly, a tailored NBS business model canvas was designed to evaluate the business model components. From the overarching framework, the preselection web tool was created to guide decision-making on suitable governance, finance, and business models in the early phases of NBS projects.

Holistic Business Model Conceptualisation—Capturing Sustainability Contributions Illustrated by Nature-Based Solutions

“…While the business model thinking and tools are primarily designed for and used by profit-maximizing or at least profit-oriented businesses, an increasing number of projects, networks, and studies match business model thinking with entrepreneurship [16], ecosystem services [17], Life Cycle Thinking [18] sustainability [19][20][21][22][23], circularity concepts [24] and NBS [25]. The latter one on NBS is detailed further hereafter only.…”

“…Further research also proposed tools and templates to capture NBS business models [25,[32][33][34]. Depending on the projects' objectives and researchers' backgrounds, different elements are highlighted.…”

“…Another EU project, Natur4Cities (https://www.nature4cities.eu/ (accessed on 10 June 2023)) [43], developed and proposed another BMC modification tailored to NBS. This new template called the WHAT-WHO-HOW framework, puts a special emphasis on the NBS' governance, benefits, and beneficiaries [25]. The diamond model [34] was developed to capture business models of food production in urban landscapes.…”

“…Key resources, activities and partners, which together describe the NBS infrastructure, are listed in three building blocks, while the bottom left segment focuses on costs (cost structure) and measures of cost reduction. As pointed out by Bockarjova [27], Egusquiza [25], and Mayor [26], the latter can be achieved through reduced maintenance costs compared to alternative uses, as well as the use of volunteers during NBS implementation and/or maintenance. The top segment of this NB S BMC highlights the main positive (right) and potentially negative (left) social and environmental impacts.…”

“…The building blocks of the NB S BMC beyond the original BMC originate from the before-introduced modifications of the BMC towards sustainability and NBS. Alterations are considering earlier works from proGIreg's sister projects Connecting Nature [32] (blue colour in Figure 2), UNaLab [33] (green colour) and Nature4Cities [25] (yellow colour), as well as the Sustainable BMC from Gerlach [8] (red colour). The UNaLab team highlights seven building blocks; while the left half of the original BMC remains untouched, the right half is simplified and adjusted by focusing on beneficiaries and financing models.…”