Implementing Nature-Based Solutions in Urban Areas: Financing and Governance Aspects

Fostering nature-based solutions in urban areas is an issue that receives increasing attention on the political agenda. But in many cases, only insufficient financial resources are available for the implementation of such solutions. A central issue in this context is the structure of municipal revenues, which stem from either municipal tax revenue, fees for municipal services, or fiscal transfers from other governmental levels. Many of these revenues are however absorbed by specific tasks, especially social expenditure; thus there is little room left for autonomous investments, e.g. into nature-based solutions and green infrastructure. In this chapter we elaborate on the structure of the problem such as the corresponding fiscal and constitutional restrictions and analyse which solutions are possible to allow for greater investments into multifunctional urban nature-based solutions.