The Role of Carbon Finance in Scaling Nature-Based Solutions (NBS) for Climate Action

[Charlottesville, Virginia, USA; 25 February 2025]

Mangroves are among the most vital ecosystems for climate resilience, yet they are at risk of collapse. According to the International Union for Conservation of Nature (IUCN), over half of all mangrove ecosystems face collapse by 2050 due to deforestation, pollution, and climate change. The loss of these critical ecosystems threatens biodiversity, coastal resilience, and carbon sequestration potential.

However, scalable nature-based solutions (NBS) offer a powerful way to combat this crisis. By leveraging carbon finance, large-scale restoration projects can secure the funding needed to restore degraded mangrove forests, protect biodiversity, and support local communities.

One such example is our Pesisir Biru Nusantara project in Indonesia, which is revitalizing coastal ecosystems through strategic reforestation efforts. Learn more.

Why Carbon Finance is Critical for NBS Scalability

Carbon finance provides the necessary capital to scale NBS by monetizing the climate benefits of activities such as forest restoration, wetland conservation, and regenerative agriculture. By generating high-integrity carbon credits, these projects attract funding from corporations and institutions aiming to offset their emissions while supporting global sustainability goals.

How Carbon Projects Secure Funding Through Carbon Credits

Projects that mitigate greenhouse gas emissions or enhance carbon sequestration can generate verified carbon credits under recognized standards like Verra’s Verified Carbon Standard (VCS) or Gold Standard. These credits are then sold to buyers seeking high-integrity offsets. The revenue from credit sales sustains project operations, covering costs such as afforestation activities, biodiversity monitoring, and community engagement.

Climate Investment Partners’ Approach to Financing High-Impact Nature-Based Projects

Climate Investment Partners specializes in identifying, structuring, and financing NBS projects that deliver verifiable climate, social, and biodiversity benefits. Our portfolio includes initiatives that restore degraded landscapes, enhance ecosystem resilience, and provide sustainable livelihoods to local communities. Through strategic partnerships and rigorous due diligence, we ensure that investments generate real and measurable impact.

Challenges to Scaling NBS

While carbon finance offers a viable pathway for scaling NBS, several challenges remain:

• Land Tenure and Policy Barriers – Unclear land rights and regulatory complexities can delay project development.
• Upfront Investment Needs – Many projects require significant initial funding before generating carbon credits.
• Market Demand & Price Volatility – Fluctuations in carbon credit prices affect project financial stability.
• Data & Monitoring Requirements – High-quality measurement, reporting, and verification (MRV) systems are essential for credibility.

Success Stories from CIP-Backed Projects

Through our work, Climate Investment Partners has supported impactful NBS projects worldwide. For example:

• Pesisir Biru Nusantara – Indonesia – A large-scale mangrove restoration project revitalizing coastal ecosystems while enhancing climate resilience and local livelihoods. Read more
• Reflorestamento de Impacto – Brazil – [Validated by Verra] A transformative afforestation project restoring degraded farmland with native tree species, creating carbon credits and employment opportunities. Read more

Scaling Nature-Based Solutions: A Call to Action

The urgency of conserving and restoring ecosystems extends beyond mangroves to forests, grasslands, and wetlands—each playing a critical role in carbon sequestration and climate adaptation. 

From reforesting degraded land in Brazil to reviving coastal ecosystems in Indonesia, large-scale NBS projects are proving that environmental restoration and economic growth can go hand in hand. By scaling these efforts, we can secure a more resilient future for both people and the planet.

Scaling NBS through carbon finance is not just an opportunity—it is a necessity. Learn how Climate Investment Partners is driving impact and explore ways to be part of the solution. Explore Our Work.

For media inquiries or further information, please contact:

info@ClimateInvestmentPartners.com