Innovative Financing for Nature-Based Solutions in Flemish Cities (INNOFINS)

emish cities are expected to take a leading role in climate adaptation and mitigation strategies. At the core of these strategies are nature based solutions (NBS) by green, blue and hybrid urban infrastructures. NBS address multiple problems related to climate change in an integrated, sustainable way. Although investments in NBS infrastructures are considered a cost effective way to achieve future societal and environmental benefits, current public budgets in Flanders are insufficient. As a result, the gap between investments in and societal need for NBS is growing. In contrast to limited public budgets, there is an abundance of private capital seeking for investments. Yet, the potential to invest private capital in NBS is not fully exploited. NBS projects typically have sizeable upfront costs and diffuse and long-term societal benefits that are not easily captured in steady cash flows, making privately financed schemes often inappropriate. In order to attract private investments to NBS, new business models and alternative financing mechanisms are needed. In this project, we study the utilisation potential of three innovative financing models in the Flemish context: value capturing, impact financing and crowd funding with initial coin offerings (ICO). In order to develop a realistic but holistic and interdisciplinary approach, this strategic research will study how the new financial instruments impact planning and institutional processes, governance arrangements, valuation methods, juridical instruments as well as social justice. Together with our stakeholders, we will co-design six prototypes of alternative financing business models for green, blue and hybrid infrastructure. The urban living lab approach will ensure continuous integrated assessment of the spatial, juridical, administrative, economic feasibility and social impact of the new financing business models, optimising the utilisation potential for the societal users.

Keywords:FINANCE, CLIMATE ADAPTATION, URBAN SUSTAINABILITY, URBAN GOVERNANCE

Disciplines:Agricultural and natural resource economics, environmental and ecological economics, Urban sociology and community studies, Administrative law, Economic, commercial and financial law, Public administration not elsewhere classified, Urban and regional geography

Project type:Collaboration project