Using Blockchain Technology to Attract Funding for Nature-based Solutions

Abstract

Nature-based Solutions (NbS) are natural solutions to societal problems. NbS offer a wide range of benefits to our society, such as climate adaptation and improvements for human health and wellbeing. Nonetheless, the solutions are not yet implemented on a large scale, mainly due to a lack of funding. This paper investigates in what ways blockchain technology can be used to overcome funding barriers that hinder the implementation of Nature-based Solutions. Qualitative research was conducted using a triangulation of data sources for robust and viable results. A framework was developed explaining the two blockchain-based mechanisms that are used to attract funding for NbS. Mechanism 1 uses blockchain to tokenize natural assets to improve their tradability, while mechanism 2 combines multiple technologies to monitor and maintain NbS more efficiently and transparently. The field is still emerging, and there are some limitations, but the outlook of using these mechanisms to increase funding for Nature-based Solutions is promising.