Nature-Based Solutions for Hydropower Companies
published in November 2023
Monetizing Ecosystem Services to Finance Upstream Conservation: Lessons Learned from Two Colombian Pilots
While forest ecosystems provide invaluable services to water users, conservation efforts have fallen short of needs. Spending on nature is negligible compared to the $800bn invested annually by the water sector.To bridge the conservation funding gap, one solution could be the monetization of ecosystem services such as sedimentation and water flow regulation, which can be measured, priced and paid for by hydropower companies.
This approach creates a financial incentive for the private sector to positively impact biodiversity, human well-being and energy security, while decreasing the need to build additional hydroelectric plants.