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Most climate policy discussions focus on reducing carbon emissions and adopting clean energy alternatives, often overlooking nature — an essential ally in combating climate change.

Nature-based solutions are fundamental tools for climate action. These include restoring forests, improving soil health, and developing coastal areas to help achieve global net-zero targets.

Societies use nature-based solutions to protect and restore ecosystems, while operating sustainably to address social challenges.

Forests, wetlands, and oceans act as carbon sinks and provide powerful tools for climate adaptation and resilience. The co-benefits of nature-based solutions include strengthened communities and more robust economic systems.

The UN Environment Programme estimates that nature-based solutions could deliver up to 37 percent of the emissions reductions needed by 2030 under the Paris Agreement. Yet they currently receive less than 3 percent of total climate finance.

There is significant scope for increased investment.

The financial sector is beginning to value ecosystem services through mechanisms such as carbon and biodiversity credits. Voluntary carbon markets surpassed $2 billion in value in 2022, largely due to the prominence of nature-based components.

Biodiversity markets are also beginning to emerge. For example, France has launched a biodiversity credit system allowing developers to fund ecosystem protection as compensation for environmental impacts.

The EU Taxonomy for Sustainable Activities includes biodiversity protection and circular economy principles among its environmental criteria for sustainable investments.

Article 6 of the Paris Agreement allows for the trading of international carbon credits and channels funding toward large-scale, nature-driven projects.

In ��������, support for nature-based solutions is evident in the Kingdom’s Vision 2030 reform agenda.

Governments and ESG-minded investors must rethink their approach — seeing ecosystem restoration not as a cost, but as a long-term asset.

Majed Al-Qatari

The Saudi Green Initiative aims to plant 10 billion trees, regenerate land, and launch carbon market mechanisms linked to land-based projects.

NEOM, the futuristic city under construction along ��������’s northwestern coast, incorporates regenerative design and nature-based landscaping into its infrastructure.

Globally, other examples include Amsterdam’s urban greening initiative, which is creating parks and rooftop gardens to reduce heat and absorb carbon dioxide, and Microsoft’s investment in high-quality forest carbon projects as a part of its goal to become carbon-negative by 2030.

However, nature-based solutions face growing scrutiny over their integrity. Some carbon and biodiversity assets fail to deliver real environmental benefits.

For instance, scientists have found that more than 90 percent of evaluated rainforest carbon offsets do not reflect genuine emissions reductions.

The Integrity Council for the Voluntary Carbon Market is working to establish a global framework for high-quality, transparent carbon credits. Such standards must be adopted widely to ensure credibility and impact.

While nature-based solutions are not a silver bullet, they are essential. Only rigorous technical standards for emissions reductions can ensure progress toward net-zero targets.

Despite their potential, nature-based solutions continue to suffer from underinvestment.

When properly funded, they offer exceptional outcomes: reducing emissions, restoring biodiversity, and supporting communities.

Governments and Environmental, Social and Governance-minded investors must rethink their approach — seeing ecosystem restoration not as a cost, but as a long-term asset.

To restore the climate, we must restore nature.

• Majed Al-Qatari is a sustainability leader and ecological engineer experienced in advancing environment, social, governance and sustainability goals.