BAKU, Azerbaijan, April 22. Financing nature-based projects requires a systemic approach, including project preparation, standardization, and the use of blended finance instruments, said Gianpiero Nacci, Managing Director for Climate Strategy and Delivery at the European Bank for Reconstruction and Development (EBRD) during the Regional Ecological Summit in Astana, Trend reports.
“In many cases, it is very difficult to build a strong commercial case. Bankability depends on a solid commercial foundation,” Nacci said.
He also pointed to the lack of harmonized standards and data in the market.
“There is an issue of standardization — from due diligence packages to certification and sustainability standards. The market is not harmonized,” he noted.
Nacci stressed the importance of predictable policy frameworks and clear signals from policymakers, outlining three main pillars of the EBRD’s proposed approach.
“The idea of the partnership is built around three key priorities. First, project origination — identifying projects that deliver nature-positive outcomes. Second, project preparation, ensuring projects speak the same language as investors. Third, the use of blended finance instruments, including concessional funding, to make projects viable and implementable,” he said.
He highlighted a significant global financing gap in the biodiversity sector.
“Financing needs for biodiversity are estimated at $90–700 billion per year, while actual flows are around $200 billion,” Nacci said.
At the same time, he warned that large-scale financial flows continue to support nature-negative activities.
“Financial flows into nature-negative activities are estimated at $5–7 trillion per year,” he added.
Nacci also underlined EBRD cooperation with Uzbekistan, where the bank is supporting the development of an integrated agri-food platform aimed at promoting sustainable agriculture and related infrastructure.