Nature-based solutions: Environmental, social and economic dividends

Image: Freepik

 

The World Resources Institute (WRI) says nature-based solutions on the African continent are gaining traction and moving from concept to implementation. “One of our priorities is to improve understanding of the financial viability of nature-based solutions and build investor confidence in these models,” says Lizzie Marsters, Senior Manager Environmental Finance, Natural Infrastructure & Cities4Forest Initiatives at the WRI, who was co-author of a recent report on Growing Resilience, Unlocking the Potential of Nature-Based Solutions for Climate Resilience in Sub-Saharan Africa.

In what Marsters describes as “a true labour of love,” the report was a collaboration between the WRI and the World Bank, with contributions from the African Development Bank. Identifying nearly 300 projects, “we examined the status and trends of nature-based solution (NBS) projects that were specifically designed to address climate resilience in Sub-Saharan Africa between 2012 and 2023.”

 

“Building back better”
The African Union (AU) recognises nature-based solutions as crucial to achieving sustainable development goals and addressing climate change impacts. These solutions are broadly categorised into protection, management and restoration of ecosystems. Nature-based solutions can be applied in various contexts, including urban, peri-urban, and rural environments, and in diverse landscapes like forests, wetlands and coastal areas.

In its Green Recovery Action Plan (GRAP) 2021–2027, the African Union states that “nature-based solutions provide the opportunity to build in climate resilience at the local levels, while also contributing to improved livelihoods. Investments in nature-based solutions thus allow countries to build back better [ ] while also contributing to reducing the impact of climate change. The environmental, social and economic dividend of well-designed nature-based solutions is enormous.”

 

Addressing multiple climate-related challenges
“Of the projects we found,” says the WRI’s Lizzie Marsters, “some were purely green infrastructure, and others were green-gray—blending natural systems with traditional infrastructure. Together, these projects had secured over $21 billion in funding, of which $12.5 billion went specifically toward the nature-based components. We also found a 15% average annual increase in the number of nature-based solution projects from 2012 to 2021, along with a 23% average annual increase in new funding. That’s a significant signal that nature-based solutions are gaining traction”

The scope of these projects also reflect a growing understanding—especially among national and local governments—that nature-based solutions can address multiple climate-related challenges. Marsters explains: “Most projects were designed to deliver a mix of outcomes, with improving water quality, expanding water supply and mitigating flood risks among the top three goals. At the same time, they provided critical co-benefits like job creation, biodiversity enhancement and food security. So these projects are truly win-win solutions—strengthening climate resilience while delivering important social and economic outcomes.”

 

Need for bankable projects
Challenges that were identified included the lack of bankable projects to help prove that these projects deliver real benefits—not only in terms of climate resilience but also in economic savings, job security and broader social outcomes.

Another priority is to improve understanding of the financial viability of nature-based solutions and to build investor confidence in these models. Marsters explains: “A further barrier is the mismatch between the size of nature-based solution projects and investor expectations. Institutional investors often look for deal sizes of $25 million or more, while many nature-based solution projects are much smaller—often under $5 million.”

Globally, there are many encouraging examples of nature-based solution projects with strong profit margins: “WRI recently published a global review of over 312 nature-based solution projects. It found that for every $1 invested in adaptation, $10 in benefits are generated over a 10-year period. The study also showed that projects in sectors like agriculture, water, health and infrastructure delivered average returns of 27% annually—with some health-related projects yielding returns over 75%.” [Read or watch the full interview here.]

 

Natural processes
Biogas projects are considered highly valuable nature-based solutions, offering a renewable energy source while simultaneously addressing waste management, sanitation and climate change. They contribute to several Sustainable Development Goals (SDGs) by promoting sustainable agriculture, clean energy access and reduced reliance on unsustainable biomass. Specifically, biogas production relies on anaerobic digestion, a natural process in which bacteria break down organic matter.

 

Olympics inspired biofuel startup
The 2008 Olympic Games in China were the inspiration for the Southern African biofuel startup SeaH4, which aims to produce biogas and biofuel from ulva sea lettuce. Gabrielle Ossinga, Gabon native and co-founder and biogas and hydrogen lead for SeaH4 recalls: “One of our co-founders saw that an algal bloom or algae overgrowth was hampering the sailing competition at the Olympics. This gave him the idea that we can do something with it instead of just throwing it away and wasting it.”

To produce biogas from ulva, the sea lettuce is grown in raceway ponds, as Osinga explains: “it basically grows by itself, we don’t add anything. This feedstock is then used to produce biogas. Biogas is mostly CH4 or methane and carbon dioxide. The methane is then upgraded into bio LNG, which we use directly.”

She continues: “The carbon dioxide byproduct we will use with green hydrogen from which our partner will produce e-methanol. We will therefore have two biofuels for the hard-to-abate sectors.” Since October 2024, SeaH4 has had a demonstration plant at Pepper Bay in Saldanha “which is running smoothly,” according to Osinga. “We are aiming to have a pilot plant in Namibia, which will be about 60 times bigger.” [Watch the full interview with Gabrielle Osinga here.]

 

“Understanding how a cow eats grass”
Another up-and-coming start up, Biovest Holdings, are the inventors of what they call “a third-generation biogas plant.” Co-founder Otto Hager explains: “In simple terms, we have managed to understand how a cow eats grass, converts it into all the different products, and that’s what we are mimicking. As a result, we’ve got a plant which is not the traditional large concrete pot, but it’s containerised and is scalable. So you can go from one cow to a herd of cows, meaning that you can produce as little as 200 litres of diesel per day or up to a few thousand.”

Biovest Holding’s system uses as feedstock cellulose-rich material, which Hager says “is a fancy word for any grasses or leftovers from agricultural crops like wheat straw or rice straw. We then feed the cow, the cow eats it and makes gas. The gas can be used as an alternative for hydrocarbon fuels. Our system also produces a byproduct of food-grade carbon dioxide.”

The fact that their system is scalable provides small communities the opportunity to start with one unit, producing a certain amount of gas to perform certain activities, such as running a generator and providing gas for cooking. Once the system is in place, more units can simply be added onto it.

Biovest Holdings has already had some serious interest in its “cow” from India, with a first order for 400 units. Hager smiles: “This was a little bit of a surprise, it’s a bigger response than what we anticipated.” [Watch the full interview with Otto Hager here.]

• This article first appeared in the Green Economy Express newsletter, published by Africa’s Green Economy Summit.