The Horizon Europe RESTORE4Cs project has released its 4th Policy Brief, “Beyond public funds: diversifying financing for wetland restoration”, highlighting the urgent need to complement public funding with innovative financial instruments to ensure long-term wetland restoration in Europe.
Wetlands provide essential services, from flood protection and clean water to carbon storage, yet receive less than 9% of global nature-based solution funding. While public funds typically cover initial restoration costs, RESTORE4Cs Case Pilots show that long-term management, monitoring, and maintenance remain severely underfunded, limiting restoration success.
The brief stresses the importance of blended finance, enabling private investors, financial institutions, and impact investors to support restoration alongside public budgets. However, policy uncertainty and investment risks often hinder private participation.
Key recommendations for policymakers include:
- Reduce investment risks through stable regulations, clear targets, and risk-sharing mechanisms.
- Create markets for ecosystem services, including PES schemes and high-integrity nature credits.
- Introduce financial incentives such as tax benefits and concessional loans.
- Integrate wetlands into long-term planning and strengthen local community involvement.
With Europe’s new restoration targets and global biodiversity commitments, unlocking private finance is critical to closing the wetland funding gap.
Read the full RESTORE4Cs 4th Policy Brief below:
