Nature has been absorbing and storing carbon for millions of years, acting as the planet’s most efficient carbon sink. Every year, forests, wetlands, and soils capture and store billions of tonnes of carbon dioxide, naturally mitigating the impact of emissions. Yet, as deforestation, land degradation, and unsustainable practices accelerate, these ecosystems are losing their ability to regulate carbon—leading to an urgent need for solutions that harness nature’s restorative power.
This is where nature-based solutions (NbS) come in. NbS are actions that protect, restore, and sustainably manage ecosystems to tackle pressing environmental challenges, including carbon accumulation, biodiversity loss, and resource depletion. By enhancing the ability of forests, wetlands, agricultural lands, and coastal ecosystems to absorb carbon and maintain ecological balance, NbS offer a sustainable, science-backed approach to reducing emissions and restoring degraded environments.
Beyond their environmental benefits, these solutions also provide significant socio-economic advantages. They create jobs, improve food security, enhance biodiversity, and support local communities, making them a powerful tool for both environmental and human wellbeing. With growing interest from businesses, policymakers, and investors, NbS are increasingly seen as a cornerstone of sustainable development and a key component of the global carbon market.
This blog will explore how NbS work, the different types, and their impact on the carbon market and the planet. From reforestation to regenerative agriculture, we’ll break down the mechanisms behind these solutions, discuss their role in carbon unit generation, and highlight real-world examples that demonstrate their effectiveness.
At their core, nature-based solutions (NbS) rely on the ability of ecosystems to absorb and store carbon dioxide (CO₂) naturally. Forests, wetlands, soils, and oceans serve as carbon sinks, capturing CO₂ from the atmosphere and integrating it into biomass, soil, and organic matter.
One of the key processes behind this is photosynthesis, where plants absorb CO₂ and convert it into oxygen and organic carbon, storing it in their trunks, roots, and leaves. Additionally, soil carbon sequestration plays a crucial role—healthy soils enriched with organic matter can store vast amounts of carbon, preventing its release back into the atmosphere.
However, when ecosystems are degraded through deforestation, land mismanagement, or wetland destruction, this stored carbon is released, contributing to increased greenhouse gas levels. NbS aim to reverse this process by restoring and enhancing ecosystems, allowing them to function as effective carbon sinks once again.
Nature-based solutions take different forms, but they all follow a common principle: working with nature rather than against it. Some of the most widely implemented NbS projects include:
Community engagement and sustainable land management are critical to the success of these projects. Many NbS initiatives work directly with local populations, ensuring they benefit from improved natural resources, employment opportunities, and long-term environmental resilience.
A growing number of businesses and investors are turning to nature-based solutions as a way to offset their carbon footprint. By quantifying the amount of CO₂ removed or emissions avoided through NbS projects, developers can generate carbon credits—tradable units representing one metric tonne of CO₂ sequestered or prevented from being released.
For a project to issue carbon units, it must follow rigorous standards and verification processes to ensure its impact is real, measurable, and permanent. Some of the most recognised certification bodies include:
Once certified, NbS projects can generate carbon units for companies looking to meet sustainability targets, creating a financial incentive for landowners and communities to maintain and expand these initiatives.
As the demand for high-quality carbon units increases, NbsS are becoming an essential part of corporate and national carbon neutrality strategies. Many companies are integrating NbS into their environmental commitments, not just as offsets but as long-term investments in ecosystem restoration and resilience.
By leveraging the power of natural ecosystems, NbS offer a cost-effective, scalable, and impactful approach to carbon mitigation—one that not only reduces atmospheric CO₂ but also strengthens biodiversity and supports human livelihoods.
NbS encompass a diverse range of projects that leverage ecosystems to absorb carbon, enhance biodiversity, and support sustainable development. These solutions are tailored to different landscapes and ecosystems, each playing a distinct role in carbon sequestration and environmental resilience. Below are the key types of NbS and their contributions to both environmental protection and ecological restoration.
Forests are among the most effective carbon sinks, absorbing around 7.6 billion metric tonnes of CO₂ annually. Forest-based NbS focus on restoring, protecting, and expanding tree cover to maximise carbon sequestration and prevent deforestation-driven emissions.
These projects not only absorb carbon but also support biodiversity, regulate water cycles, and provide sustainable resources for local communities.
Wetlands and peatlands store twice as much carbon as all the world’s forests combined, yet they are often drained for agriculture or urban expansion. Restoring these ecosystems is crucial to preventing the release of vast carbon reserves.
Wetland restoration enhances carbon sequestration, improves water quality, and protects coastal communities from extreme weather.
Agriculture accounts for nearly a quarter of global greenhouse gas emissions, but regenerative practices can transform it into a carbon-absorbing sector. NbS in agriculture focus on improving soil health and reducing emissions.
These practices reduce reliance on synthetic fertilisers, improve food security, and enhance resilience to climate variability.
Traditional cooking methods, such as open fires and inefficient stoves, contribute significantly to deforestation and carbon emissions. Clean cooking solutions, including improved cookstoves and alternative fuels, reduce wood and charcoal consumption while cutting indoor air pollution.
By reducing fuel demand, clean cookstoves prevent deforestation, lower carbon emissions, and improve public health, particularly in rural and developing communities.
Oceans and coastal habitats store massive amounts of ‘blue carbon’—carbon captured by marine ecosystems. Protecting and restoring these environments is crucial for maintaining their role as carbon sinks.
Blue carbon solutions provide carbon sequestration, protect coastal communities, and sustain fisheries.
As urbanisation expands, cities are looking toward NbS to improve air quality, regulate temperature, and enhance carbon storage within urban environments.
These solutions make cities more livable, reduce pollution, and contribute to urban climate resilience.
The diverse range of nature-based solutions highlights their versatility and scalability. By investing in forests, wetlands, agricultural land, coastal habitats, and urban green spaces, governments, businesses, and communities can harness nature’s power to absorb carbon while building climate resilience.
NbS provide a multifaceted impact that extends beyond carbon sequestration. While they play a crucial role in mitigating emissions, their benefits also include biodiversity conservation, ecosystem resilience, and socio-economic improvements. In this section, we’ll explore how NbS drive environmental, social, and economic change, their role in the carbon market, and the challenges they face.
NbS are among the most effective tools for removing CO₂ from the atmosphere and reducing the overall concentration of greenhouse gases. Forests, wetlands, grasslands, and soils naturally absorb carbon and store it for decades or even centuries.
By restoring these ecosystems, NbS help stabilise climate patterns, reduce temperature fluctuations, and mitigate extreme weather events.
A well-functioning ecosystem is essential for sustaining life. NbS help restore habitats and prevent the loss of species, ensuring that ecosystems remain diverse and resilient.
By protecting and restoring biodiversity, NbS contribute to ecosystem stability, water regulation, and overall environmental health.
NbS don’t just benefit the environment—they create sustainable livelihoods and improve community resilience. Many projects directly engage local populations, offering economic incentives and alternative income sources.
For example, well-designed NbS initiatives have helped smallholder farmers in Africa adopt sustainable farming techniques, increasing their incomes while improving land productivity.
Healthy ecosystems contribute to better water availability and improved agricultural conditions. Wetlands help purify water, while agroforestry and regenerative farming prevent soil erosion and maintain fertility.
By integrating NbS into agriculture and urban planning, societies can enhance resilience to climate-induced disruptions in food and water supplies.
The demand for NbS is growing as companies and governments seek to meet net-zero targets. NbS generate carbon units, which are sold on voluntary and compliance markets.
In recent years, the price of NbS carbon units has risen due to their strong co-benefits, making them a valuable asset in the carbon economy.
While NbS offer immense potential, overcoming key challenges is essential to maximise their impact. Greenwashing risks can undermine trust, but robust certification standards ensure NbS units are verifiable, additional, and permanent. Land use conflicts can be mitigated through inclusive project design that prioritises community engagement and equitable benefit-sharing. Ensuring accurate monitoring, reporting, and verification (MRV) is critical, and innovations in remote sensing, AI, and blockchain are enhancing transparency. By tackling these challenges, NbS can scale effectively, delivering real, lasting environmental and socio-economic benefits.
NbS have proven to be one of the most effective, scalable, and cost-efficient ways to mitigate carbon emissions while improving biodiversity and human well-being. By leveraging ecosystems such as forests, wetlands, and coastal habitats, NbS can sequester carbon, restore degraded landscapes, and create long-term environmental resilience. As demand for NbS-based units continues to rise, governments, businesses, and communities must work together to scale up investments, strengthen verification mechanisms, and ensure social equity in project implementation.
Throughout this blog, we explored how NbS work, the different types, and their wide-reaching impact. From forest conservation and regenerative agriculture to wetland restoration and blue carbon solutions, these approaches provide not only climate benefits but also social and economic advantages. By integrating NbS into carbon markets, companies and investors can support high-integrity projects that generate real, verifiable carbon units while promoting sustainable development.
The success of NbS depends on collaborative efforts from businesses, policymakers, and individuals. Here’s how you can contribute:
As demand for nature-based units grows, NbS are set to play an even greater role in global sustainability strategies. With proper governance, investment, and community engagement, these solutions can help achieve net-zero goals, restore ecosystems, and enhance climate resilience worldwide.
By harnessing the power of nature, we can build a future where economic growth and environmental stewardship go hand in hand. The question is no longer if we should scale up NbS, but how fast we can act to maximise their impact.