Economic instruments

A wide range of economic instruments can be adopted to support implementation and management of NBS. Some instruments are set out to fund NBS directly, like public grants, subsidies, payments for ecosystem services, and agglomeration bonus. Other instruments aim to discourage undesirable actions, like taxes and fees which can also serve as revenue streams for funding NBS. Some of these instruments rely on the markets to incentivise investments in NBS (e.g., fees, subsidies, auctions, payments for ecosystem services). There are also debt-based instruments which may provide incentives for investing in NBS through reduced insurance premiums or loans with reduced interest rates.