D2.1 Categorising Nature-based Solutions to support decision making for financial investments

This report outlines a framework of typologies for Nature-based Solutions (NbS) that will enable BIOFIN-EU to align and integrate NbS approaches with financial decision-making. This is a key preparatory step for enabling mainstream finance towards NbS, which will be achieved through the development of a BIOFIN-EU dashboard. The concept of NbS is explained, and a concise definition is provided to facilitate its uptake. The report advises BIOFIN-EU to align with existing NbS typologies, to ensure consistency and interoperability with the wider NbS community. The NetworkNature initiative is recommended as the primary framework. NetworkNature uses four main typologies for NbS categorization. BIOFIN-EU will require additional typologies for specific topics. These could include (a) more detailed typologies for specific environments or challenges (such as Urban environment), and (b) typologies for dimensions that have not yet been covered (for example governance, or economic and financial considerations). Given the multidisciplinary nature of BIOFIN-EU, the report proposes an Integrated Assessment Chain for the NbS framework to align with. This will allow for a comprehensive assessment of typologies, tools and standards from biodiversity monitoring, natural capital accounting and ecosystem services valuation to investment decision making. The report sets the stage for the next step for BIOFIN-EU, the design of a dashboard that will facilitate financial decision making and support the development of new financial products and instruments towards NbS.