Case study: Nature-based solutions — a leading organization's implementation and lessons learned

In 2024, nature-based solutions (NbS) attracted over USD 200 billion in cumulative investment globally, yet the Asia-Pacific region—home to 60% of the world's population and some of its most climate-vulnerable coastlines—received less than 18% of that capital despite facing annual climate-related losses exceeding USD 80 billion. This stark asymmetry reveals both the untapped potential and the systemic barriers that organizations must navigate when implementing NbS at scale. This case study examines how leading organizations in the Asia-Pacific have approached mangrove restoration, urban green infrastructure, and watershed protection, extracting actionable lessons on implementation trade-offs, stakeholder incentives, and the hidden bottlenecks that determine success or failure.

Why It Matters

Nature-based solutions represent one of the most cost-effective pathways to simultaneously address climate adaptation, biodiversity loss, and sustainable development goals. According to the UNEP State of Finance for Nature Report (2024), scaling NbS investments to USD 542 billion annually by 2030 could close the biodiversity finance gap while delivering adaptation co-benefits worth USD 4.30 for every dollar invested. In the Asia-Pacific context, this matters profoundly: the region experiences 70% of global natural disasters, with climate-related economic losses projected to reach 26% of GDP by 2050 under high-emission scenarios.

The 2024-2025 period has witnessed significant acceleration in NbS deployment across Asia-Pacific. China's national mangrove restoration program expanded to cover 24,000 hectares by late 2024, while Indonesia's Mangrove and Peatland Restoration Agency achieved 60% of its 2024 restoration targets by mid-year. Singapore's "City in Nature" vision allocated SGD 5 billion through 2030, with 130 hectares of new nature parks opened in 2024 alone. Japan's Green Infrastructure Promotion Strategy disbursed JPY 280 billion for watershed and urban NbS projects between 2023-2025.

However, the implementation gap remains severe. Analysis from the Asian Development Bank indicates that only 12% of announced NbS projects in the region progress from pilot to commercial scale. Understanding why—through examining real organizational implementations—provides the strategic intelligence necessary for product and design teams building climate solutions.

Key Concepts

Nature-Based Solutions (NbS): Defined by the International Union for Conservation of Nature (IUCN) as actions to protect, sustainably manage, and restore natural or modified ecosystems that address societal challenges effectively and adaptively, while providing human well-being and biodiversity benefits. In practice, NbS encompasses mangrove and coral reef restoration, urban forests, constructed wetlands, regenerative agriculture, and ecosystem-based disaster risk reduction.

Unit Economics: The direct revenues and costs associated with a single unit of NbS deployment—typically measured per hectare for restoration projects or per square meter for urban installations. Critical metrics include establishment cost (USD 2,500-15,000 per hectare for mangrove restoration in Southeast Asia), annual maintenance operating expenditure (opex), carbon credit generation rates (typically 8-15 tCO2e per hectare annually for mature mangroves), and payback periods under various revenue scenarios.

Insurance and Risk Transfer: The emerging practice of incorporating NbS into insurance products and catastrophe bonds. Parametric insurance products now cover over USD 3.2 billion in coastal assets protected by mangroves and coral reefs across Asia-Pacific. Organizations must understand how insurers value ecosystem-based protection and structure projects to unlock premium reductions or coverage eligibility.

Compliance Frameworks: The regulatory requirements and voluntary standards governing NbS implementation. Key frameworks include Verra's Verified Carbon Standard (VCS) with its Jurisdictional and Nested REDD+ requirements, Gold Standard for Nature-Based Solutions, and emerging mandatory biodiversity disclosure requirements under the Taskforce on Nature-related Financial Disclosures (TNFD). In Asia-Pacific, national compliance drivers include Indonesia's carbon pricing regulations (Presidential Regulation 98/2021), China's Certified Emission Reduction system, and Australia's Nature Repair Market.

Transition Plans: Organizational roadmaps for shifting from conventional infrastructure or land management to NbS-integrated approaches. Effective transition plans address phasing of capital expenditure, stakeholder engagement timelines, monitoring technology deployment, and adaptive management triggers. The concept has gained prominence following TNFD disclosure requirements and investor expectations for nature-positive commitments.

What's Working and What Isn't

What's Working

Blended Finance Structures with Clear Revenue Stacking: The most successful Asia-Pacific NbS implementations combine multiple revenue streams from inception. The Mikoko Pamoja model, adapted in Vietnam's Ca Mau province, stacks carbon credit sales (generating USD 18 per tCO2e in 2024 voluntary markets), sustainable aquaculture co-management rights, ecotourism fees, and government payments for ecosystem services. This approach achieved positive unit economics within 4 years compared to 8-12 years for single-revenue projects. Organizations replicating this model report that explicit revenue-sharing agreements with local communities—typically 60-70% of carbon revenues—dramatically reduce land-use conflict and project delays.

Insurance-Linked Conservation Financing: Swiss Re's parametric coral reef insurance in the Philippines, expanded in 2024 to cover 150 kilometers of reef systems, demonstrates how financial innovation can create sustainable funding mechanisms. When typhoon-related damage triggers payouts (based on verified wave height and wind speed), funds flow directly to trained local response teams for immediate restoration. This model has attracted replication in Fiji, Thailand, and the Maldives. The mechanism works because it aligns insurer interests (reduced long-term claims from protected coastal assets) with conservation outcomes.

Digital MRV Integration from Project Inception: Projects that deploy satellite monitoring, IoT sensors, and AI-based verification from design phase show 40% lower verification costs and faster credit issuance. Indonesia's Blue Carbon Consortium, established in 2023, mandates standardized digital monitoring protocols across all member projects. The consortium's 2024 data shows that projects using continuous monitoring achieved first credit issuance in 18 months versus 36 months for traditional ground-based verification approaches.

Municipal Green Bonds for Urban NbS: Surabaya, Indonesia issued Southeast Asia's first municipal green bond for urban nature-based flood management in 2024, raising IDR 2.4 trillion for bioretention systems, permeable pavements, and urban wetland restoration. The bond achieved 3.2x oversubscription by demonstrating quantified stormwater management benefits equivalent to IDR 180 billion in avoided infrastructure costs annually. This template has since been adopted in discussions for Bangkok, Ho Chi Minh City, and Manila.

What Isn't Working

Underestimating Community Engagement Timelines: Analysis of 47 failed or stalled NbS projects in Southeast Asia reveals that 68% experienced delays exceeding 18 months due to inadequate community consultation. Organizations frequently budget 3-6 months for community engagement when successful projects require 12-24 months to achieve genuine buy-in. The hidden bottleneck lies in tenure clarification—in Indonesia alone, 32% of potential mangrove restoration sites have overlapping or disputed claims between national government, provincial authorities, and customary rights holders.

Misaligned Incentives in Carbon Credit Arrangements: Several high-profile projects have collapsed when carbon credit developers retained >80% of revenues, leaving insufficient returns to maintain local stewardship. The Blue Carbon Project in Kalimantan, which aimed to restore 10,000 hectares, ceased operations in 2024 after communities withdrew participation due to perceived inequitable benefit-sharing. Organizations must recognize that the cheapest development arrangement often becomes the most expensive when projects fail.

Ignoring Transition Risks in Existing Land Uses: Projects that displace productive activities (aquaculture, agriculture, informal settlements) without adequate livelihood transition support face sustained resistance. In the Philippines, a 2023 coastal protection project experienced 40% encroachment within two years because displaced fisherfolk had no viable alternative income sources during the 3-5 year period before restored ecosystems could support sustainable harvesting.

Over-Reliance on Single Compliance Pathways: Organizations designing projects exclusively around VCS certification face vulnerability when standards evolve. The 2024 Verra methodology updates that increased additionality requirements stranded several pipeline projects that could not demonstrate baselines under the new framework. Successful implementations maintain flexibility to pivot between compliance pathways or access domestic carbon markets.

Key Players

Established Leaders

1. Asia Pulp & Paper (APP) - Sinar Mas: Operates the largest private sector peatland restoration program in Indonesia, with 360,000 hectares under management. Their Fire-Free Village Programme provides replicable stakeholder incentive models, demonstrating how agricultural companies can transition from exploitation to restoration while maintaining commercial viability.

2. Temasek Holdings: Singapore's sovereign wealth fund has committed SGD 5 billion to nature-based solutions through its GenZero platform and direct investments. Their approach emphasizes scalable business models, having backed 23 NbS companies across Asia-Pacific since 2022.

3. Nippon Koei Co., Ltd.: Japan's largest engineering consultancy has integrated NbS into over 200 infrastructure projects across Asia-Pacific, particularly in flood management and urban heat mitigation. Their hybrid gray-green infrastructure designs provide templates for municipal adoption.

4. Olam International: Through their AtSource program, Olam has implemented regenerative agriculture and agroforestry across 4.2 million hectares of supplier landscapes in Vietnam, Indonesia, and India, generating verified carbon credits while improving supply chain resilience.

5. The Nature Conservancy - Asia Pacific Division: Manages direct implementation of NbS across 12 countries with total protected area exceeding 2.8 million hectares. Their Blue Carbon Lab provides open-source methodologies that have shaped regional standards.

Emerging Startups

1. Blue Carbon (Indonesia): Founded in 2021, this Jakarta-based startup has pioneered community-centered mangrove restoration models, securing USD 42 million in carbon offtake agreements by 2024. Their technology platform integrates community benefit tracking with satellite monitoring.

2. Worldview International Foundation (Myanmar/Bangladesh): Though technically an NGO, their startup-like approach to mangrove restoration has achieved the lowest verified restoration costs in Asia at USD 1,800 per hectare through innovative community nursery networks.

3. Climate Impact Partners (Singapore): Developed the region's first nature-based solutions insurance-linked securities, unlocking institutional capital for coastal protection projects across Southeast Asia.

4. Terrascope (Singapore): Provides enterprise software for nature and carbon footprint measurement, enabling corporations to integrate NbS into scope 3 emissions reduction strategies with verifiable impact tracking.

5. Fairatmos (Indonesia): Operating since 2022, this startup has built Indonesia's first domestic voluntary carbon marketplace, facilitating over 500,000 tCO2e in nature-based credit transactions by end of 2024.

Key Investors & Funders

1. Asian Development Bank - ASEAN Catalytic Green Finance Facility: Deployed USD 1.8 billion in blended finance for nature-based infrastructure across Southeast Asia between 2022-2025, with concessional tranches specifically structured to address NbS project risks.

2. Green Climate Fund: The largest multilateral climate fund has approved USD 2.3 billion for Asia-Pacific NbS projects, including the landmark Bangladesh Delta Plan and Indonesia's Ecosystem Restoration Concessions.

3. Clarmondial AG: This Swiss investment advisor manages the Natural Capital Financing Facility, which has invested EUR 420 million in Asia-Pacific NbS projects emphasizing sustainable forestry and coastal resilience.

4. Mirova Natural Capital: Through its Land Degradation Neutrality Fund, Mirova has committed USD 180 million to Asia-Pacific restoration projects, including significant mangrove and agroforestry investments in Indonesia and Vietnam.

5. Japan International Cooperation Agency (JICA): Provides concessional loans and technical assistance for NbS integration into infrastructure projects, with outstanding commitments exceeding JPY 450 billion across 35 Asia-Pacific countries.

Examples

1. Vietnam's Ca Mau Blue Carbon Project: This implementation by SNV Netherlands Development Organisation and the Vietnamese government restored 3,200 hectares of mangroves across four communes between 2021-2024. Unit economics achieved breakeven in year 4 through carbon credit sales (averaging USD 16.50 per tCO2e), shrimp-mangrove integrated farming licenses (contributing 35% of revenues), and government payment for ecosystem services (15%). The project navigated a critical hidden bottleneck by investing 18 months in cadastral mapping and tenure clarification before any restoration activities, avoiding the land disputes that plagued neighboring initiatives. Stakeholder incentives were aligned through a cooperative structure where commune members receive 65% of carbon revenues and retain 100% of aquaculture proceeds. Key metrics: 28,000 tCO2e sequestered annually, 2,400 households with improved livelihoods, USD 4.2 million total investment with projected 15-year NPV of USD 8.7 million.

2. Singapore's ABC Waters Programme - Bishan-Ang Mo Kio Park Expansion: The Public Utilities Board (PUB) expanded this flagship urban NbS project by 12 hectares in 2024, converting a concrete canal into a naturalized river with bioengineered banks and constructed wetlands. Implementation trade-offs centered on balancing flood conveyance capacity (requiring minimum channel widths) against biodiversity habitat creation (requiring heterogeneous bank profiles). The transition plan phased construction across three wet seasons to maintain flood protection during works. Unit economics demonstrated that while initial capital expenditure exceeded conventional drainage by 40% (SGD 76 million vs. projected SGD 54 million), life-cycle costs over 30 years are 22% lower due to reduced maintenance and deferred replacement. The project unlocked SGD 340 million in adjacent property value appreciation—a co-benefit that enabled partial cost recovery through development contributions.

3. Indonesia's Ecosystem Restoration Concession - PT Rimba Makmur Utama: This private sector implementation in Central Kalimantan manages 157,000 hectares of peatland and lowland forest under a 60-year concession. The hidden bottleneck proved to be achieving compliance with multiple overlapping jurisdictions—the project spent 4 years and USD 12 million navigating permits from 17 separate agencies before restoration could commence. Implementation trade-offs balanced conservation priorities against the commercial necessity of generating revenues to sustain operations. The solution integrated sustainable forest products (rattan, honey, fish) generating USD 2.4 million annually, carbon credits (180,000 tCO2e registered under VCS in 2024), and research station fees. Stakeholder incentives for the 14 villages within the concession include employment (240 direct positions), revenue sharing (8% of gross), and formalized access rights to non-timber forest products. The transition plan required relocating 3 illegal mining operations, accomplished through a combination of enforcement and alternative livelihood provision.

Action Checklist

• Conduct comprehensive land tenure and rights assessment before site selection, budgeting 15-20% of pre-development costs for cadastral mapping and stakeholder identification
• Design revenue stacking models from inception, targeting minimum three income streams to achieve resilience against single-market failures
• Establish community benefit-sharing agreements with guaranteed minimum percentages (recommend >50%) before securing carbon offtake arrangements
• Integrate digital MRV systems (satellite monitoring, remote sensors) during project design phase rather than retrofitting after establishment
• Develop transition plans for displaced land uses with concrete livelihood alternatives and bridge financing for the gap period before ecosystem productivity
• Engage insurance advisors early to structure projects eligible for parametric coverage or premium reduction partnerships
• Maintain compliance pathway flexibility by documenting additionality and baseline data sufficient for multiple certification standards
• Budget realistic community engagement timelines (18-24 months minimum) in project schedules and investor communications
• Establish adaptive management triggers with pre-defined responses to monitoring data indicating underperformance
• Create stakeholder governance structures that give communities meaningful decision-making authority, not merely consultation rights

FAQ

Q: What is the typical payback period for nature-based solutions projects in Asia-Pacific? A: Payback periods vary significantly based on project type, revenue structure, and location. Mangrove restoration projects with carbon credit sales and sustainable aquaculture integration typically achieve payback within 5-8 years. Urban NbS projects (green roofs, bioswales, urban forests) rarely achieve direct financial payback but demonstrate cost-effectiveness when lifecycle costs and co-benefits (property values, health outcomes, reduced infrastructure maintenance) are included—typically showing positive returns within 10-15 years on a total economic value basis. Projects relying solely on carbon credits face longer payback periods of 10-15 years given current voluntary market prices. The key accelerant is revenue stacking: projects with four or more revenue streams show payback periods 40% shorter than single-revenue approaches.

Q: How do organizations navigate the tension between speed-to-market pressures and adequate community engagement? A: Successful organizations decouple investor timelines from community engagement realities by structuring development phases with explicit gates. The pre-development phase (12-24 months) focuses exclusively on community engagement, tenure clarification, and stakeholder alignment, funded through grant capital or patient equity. Carbon offtake agreements and commercial financing enter only after community agreements are formalized. Organizations that compress community engagement to meet investor timelines consistently face project delays exceeding 3 years or outright failures. The practical solution is transparent communication with investors about realistic timelines, supported by evidence from failed projects that attempted acceleration.

Q: What monitoring technologies are most cost-effective for NbS verification in Asia-Pacific? A: The optimal monitoring stack for most Asia-Pacific NbS projects combines satellite imagery (Sentinel-2 and Planet Labs for vegetation indices), drone-based LiDAR for biomass estimation (quarterly flights), and IoT sensors for hydrology and microclimate. This combination achieves verification costs of USD 15-25 per hectare annually, compared to USD 45-80 for traditional ground-based monitoring. For mangrove and coastal projects, integration with tidal gauge data and automated image classification using machine learning reduces human analyst time by 70%. Critical success factors include establishing baseline monitoring 12-18 months before project intervention and selecting technologies with sufficient local technical support for maintenance and troubleshooting.

Q: How are compliance requirements evolving for nature-based solutions in the region? A: Three trajectories are shaping compliance evolution. First, carbon market integrity requirements are tightening—Verra's 2024 methodology updates and the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles require more rigorous additionality demonstration and community safeguards. Second, mandatory nature-related disclosures under TNFD are creating demand for verified NbS performance data from corporate supply chains. Third, domestic carbon markets are maturing—Indonesia's mandatory carbon pricing for power and industry (operational from 2025) and China's CCER restart create compliance-grade demand for nature-based credits. Organizations should design projects to meet the highest applicable standard while maintaining documentation sufficient for multiple pathways.

Q: What are the key insurance products available for NbS projects and how do organizations access them? A: Four insurance categories are relevant. Parametric ecosystem insurance (offered by Swiss Re, Munich Re, and AXA Climate) provides rapid payouts for restoration following defined trigger events—available for coastal ecosystems with established value assessments. Construction and establishment period coverage protects against planting failures due to extreme weather—typically structured as weather-indexed policies with premiums of 3-6% of establishment costs. Carbon credit delivery insurance (emerging from Howden, Gallagher) guarantees minimum credit issuance volumes—premiums range 8-15% of projected revenues. Liability coverage for community benefit commitments protects against claims from stakeholder agreements. Access requires engaging specialist brokers with nature-based solutions experience and providing detailed project documentation including monitoring protocols and stakeholder agreements.

Sources

• UNEP. "State of Finance for Nature 2024." United Nations Environment Programme, 2024. Comprehensive analysis of global NbS investment flows and financing gaps.

• Asian Development Bank. "Nature-Based Solutions for Climate Resilience in Asia and the Pacific." ADB, 2024. Regional assessment of NbS opportunities and implementation barriers.

• IUCN. "IUCN Global Standard for Nature-based Solutions." International Union for Conservation of Nature, 2020. Foundational framework for NbS definition and quality criteria.

• Taskforce on Nature-related Financial Disclosures. "Recommendations of the Taskforce on Nature-related Financial Disclosures." TNFD, 2023. Framework shaping corporate nature-related disclosure requirements.

• Blue Carbon Initiative. "Blue Carbon Methods: An Assessment of Carbon Stock Assessment Methods for Coastal Vegetated Ecosystems." Conservation International, IOC-UNESCO, IUCN, 2024. Technical guidance for mangrove and coastal wetland carbon accounting.

• Climate Policy Initiative. "Global Landscape of Climate Finance 2024." CPI, 2024. Authoritative tracking of climate finance flows including nature-based solutions allocation.

• SNV Netherlands Development Organisation. "Vietnam Mangrove Restoration and Carbon Finance: Lessons Learned 2021-2024." SNV, 2024. Primary source documentation of Ca Mau project implementation.