InnoFiNS. Implementing innovative financing for nature-based solutions in Flemish cities.

Flemish 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 utilization potential of innovative financing models in the Flemish context by developing real life business cases of NBS, using new instruments such as impact financing, value capturing and ICO-crowd funding. In order to develop a realistic and holistic interdisciplinary approach, this strategic research will study how new financial instruments impact planning and design of NBS infrastructure. The urban living lab approach will ensure continuous integrated assessment of the spatial, juridical, institutional, economic feasibility and social impact of the new financing business models, optimising the utilisation potential for the societal users.This research project will be integrated in the SBO-FWO project Innofins if granted. The SEP grant will be used to finance the planning and design research track of the proposal and will finance a part time post doc to coordinate the living labs and to develop a new proposal for similar funding opportunities.

Keywords:FINANCIAL INSTRUMENTS, NATURE DEVELOPMENT, URBAN PLANNING

Disciplines:Urban and regional planning policy, instruments and legislation