If you are a Property and Casualty Insurer dealing with rising climate-driven flood claims — this project developed a Decision Support toolbox that helps quantify how nature-based solutions reduce risk. This allows you to better price premiums and support green infrastructure that lowers payout risks.
Financial Tools to Monetize and Invest in Nature-Based Climate Risk Reduction
Imagine trying to convince a bank to fund a park instead of a concrete wall to stop floods, but you can't prove exactly how much money the park saves. This work creates a way to put a price tag on the benefits of nature, like cooler cities and fewer floods. It turns green spaces into measurable financial assets that investors can actually trust.
What needed solving
Investors avoid nature-based solutions because there is no standard way to calculate their financial return or risk-reduction value compared to traditional concrete infrastructure.
What was built
A Decision Support toolbox and an evaluation method for cost-benefit analysis of nature-based solutions.
Who needs this
Who can put this to work
If you are an Urban Property Developer dealing with strict heat-island regulations and high cooling costs — this project developed an evaluation tool to calculate the economic performance of green roofs and walls. You can use this to build a stronger business case for sustainable building investments.
If you are a Green Investment Fund dealing with a lack of standardized data for nature-based assets — this project developed a cost-benefit analysis method. This enables you to compare green versus grey solutions and select investments with the highest social and financial impact.
Quick answers
How does this help reduce project costs?
Based on available project data, it provides a Decision Support toolbox to compare grey and green solutions, allowing developers to choose the most cost-effective option for risk reduction.
Can this be scaled to different environments?
Yes, the project evaluates 5 Living Labs across coastal, urban, rural, and mountainous scenarios in Norway, Denmark, Poland, Austria, and Portugal.
What are the IP or licensing terms for the tools?
Based on available project data, specific licensing terms are not mentioned, but the project aims to create a market for these solutions through co-development with 15 partners.
Does this help with environmental regulations?
The project focuses on climate mitigation and risk reduction, which helps companies meet targets related to pollution and climatic changes.
When will the tools be available for use?
The project period runs from 2022-07-01 to 2026-06-30, suggesting the final tools will be ready by mid-2026.
Who built it
The consortium is well-balanced for market entry, featuring a 33% industry ratio with 5 industrial partners and 2 SMEs. With 15 partners across 11 countries, the group combines academic research (1 university, 4 research centers) with practical application, ensuring the tools are designed for actual investors and insurance companies rather than just theoretical use.
Contact JOANNEUM RESEARCH FORSCHUNGSGESELLSCHAFT MBH in Austria
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Contact us to get early access to the Decision Support toolbox for your green investment portfolio.