LocationsHow nature-based solutions are bridging global gaps
Reimagining finance for development
April 22, 2025
The achievements of past Equator Prize winners serve as inspiration for the upcoming FfD4 conference in late June.
Photo: UNDP
This year marks a decade since the adoption of the Sustainable Development Goals (SDGs), a milestone that invites reflection on both achievements and shortcomings. While significant progress has been made in some areas, the promise of sustainable development remains unfulfilled. With less than five years until 2030, only 17 percent of the goals are on track, while 18 percent are regressing and 17 percent have seen no progress. Addressing these gaps requires bold action, particularly in overcoming the financial challenges that lie at the heart of the current crisis.
The numbers are clear: the SDG Knowledge Hub estimates annual financing gaps between US$2.5 trillion and $4 trillion, with biodiversity conservation alone facing a shortfall of over $700 billion. Meanwhile, developed nations continue to fall short of the $100 billion annual climate financing commitment and now face the daunting task of mobilizing $300 billion annually for developing countries —an increasingly unrealistic goal under existing mechanisms.
Despite the constraints of the international financial system, communities around the world are developing innovative, nature-based financial solutions that offer a path forward. The 2024 UNEP Nature-Based Solutions Workshop in Nairobi showcased groundbreaking models that address environmental and social challenges while redefining approaches to sustainable development financing. These initiatives, led by Equator Prize winners, illustrate the power of grassroots action in bridging critical financing gaps.
Participants at the 2024 UNEP Nature-Based Solutions Regional Workshop for Africa in Nairobi, Kenya
Photo: UNDP
One such innovation is Mikoko Pamoja, a community-led initiative in Kenya’s Gazi Bay that has redefined how nature can generate lasting revenue. Despite the vast ecological and socioeconomic benefits of mangroves, their market value has long been overlooked. In response, Mikoko Pamoja became the world’s first project to sell carbon credits from mangrove conservation, using Plan Vivo Certificates —independently verified credits that fund community-led restoration while certifying real carbon savings— since 2013. This 2017 Equator Prize winner has financed the conservation of 117 hectares of state-owned mangroves, 10 hectares of plantations, and the annual restoration of 0.4 hectares, sequestering approximately 3,000 metric tons of CO₂-equivalent per year. By turning conservation into a self-sustaining revenue stream, it offers a replicable model for financing biodiversity and climate action in mangrove ecosystems and beyond.
The Mikoko Pamoja community working among their mangroves.
Photo: UNDP
For decades, the Hadza people of Tanzania’s Yaeda Valley faced shrinking ancestral lands and deforestation, threatening their way of life. In response, they secured legal land rights in 2011 and partnered with Carbon Tanzania to sell carbon credits, preventing the release of 22,000 metric tons of CO₂ emissions annually. This initiative has generated over $350,000, funding community wildlife scouts and local needs. Deforestation in their protected territory has dropped to just 0.1 percent, compared to 2.1 percent outside it, while endangered species like elephants and wild dogs are making a comeback. The success of this 2019 Equator Prize winner proves that securing land rights and leveraging innovative finance can drive both conservation and economic prosperity.
The Hadza people of Tanzania’s Yaeda Valley walking across their ancestral lands.
Photo: UNDP
Another innovation featured in Nairobi was CredorSave Loans, a 2024 Equator Prize winner, which is bridging the gap between climate and biodiversity losses and the financial needs of vulnerable communities in Zambia’s Rufunsa District. Its community-based financing model enables farmers —especially women— to invest in sustainable agriculture without high-interest debt. By aligning repayments with harvest cycles and providing financial literacy training, the initiative has boosted food security, increased incomes, and strengthened economic resilience, with 99 percent of households repaying on time and 95 percent achieving year-round crop production. Without a doubt, their model should serve as a valuable inspiration for improving the international financial system.
CredorSave Loans members honoured by UNDP Zambia at their 2024 Equator Prize National Ceremony.
Photo: UNDP
"The global financial system is broken —but not beyond repair."- António Guterres, UN Secretary-General
The Nashulai Maasai Conservancy offers another example of innovative financing. Observing how the Republic of Kenya’s vast Masa-Serengeti ecosystem was threatened by climate change, water insecurity, and social injustices, the 2016 Equator Prize winner launched the conservancy exclusively through crowdfunding —a vital funding tool that provided unrestricted funds and full control over its direction. Since then, the conservancy has also utilized grant awards to launch new projects, such as ecotourism, soapmaking, and beadmaking. These efforts not only support conservation but also generate income for local Maasai communities, proving that alternative financing mechanisms can drive both ecological and social transformation.
The Nashulai Maasai Conservancy are caretakers of Kenya’s unique Mara-Serengeti ecosystem.
Photo: UNDP
One final innovation highlighted at the UNEP Workshop was Perfect Village Communities (PVC) in Burundi. PVC Burundi is country’s first carbon credit system to combat land degradation, biodiversity loss, and food insecurity. By supporting local communities through income-generating projects that promote regeneration, PVC is pushing for the recognition of vital ecological benefits often overlooked in financial markets. Recognizing the economic and environmental potential of community-based carbon credits, the 2023 Equator Prize winner has already reached over 3,000 communities with information on carbon markets and plans to expand its outreach. The organization is also securing partnerships with buyers and establishing systems to track and access carbon credits, creating new opportunities for local stakeholders.
As the world prepares for the Fourth International Conference on Financing for Development (FfD4) in Seville, local communities and Indigenous Peoples provide essential insights on transforming financial systems to drive sustainable development. Their innovative, nature-based solutions provide clear examples of how reforming global finance can support both the SDGs and biodiversity goals. As UN Secretary-General António Guterres has said, “The global financial system is broken—but not beyond repair,” and these communities are showing the way forward.
The PVC Burundi community started the country’s first carbon credit system to combat land degradation, biodiversity loss, and food insecurity.
Photo: UNDP
Equator Prize winners, highlighted at the Nairobi workshop, offer inspiring models of how finance and nature can work hand in hand. Their work demonstrates that a sustainable and inclusive financial future is not just possible but already within reach. By incorporating these approaches, FfD4 has the opportunity to inspire meaningful reforms, showcasing how local, nature-based solutions can drive global progress and reshape the future of the international financial system.
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