Global Green Bond Facility Expands to Finance Nature-Based Solutions

The Global Green Bond Facility (GGBF) today announced a major expansion aimed at accelerating investments in nature-based solutions (NbS), marking a significant advancement in global sustainable finance. This expansion will enable governments, financial institutions, and private-sector partners to access new funding streams designed to restore ecosystems, strengthen climate resilience, and create equitable green economic opportunities.

Major Expansion to Support Nature-Based Solutions

The newly expanded facility will provide enhanced financial tools—including concessional loans, blended finance options, technical assistance, and impact monitoring systems—to support projects such as reforestation, wetland restoration, sustainable agriculture, coastal resilience, and biodiversity conservation.

According to GGBF, demand for green bonds targeting nature-based projects has grown by more than 40% in the past two years, reflecting rising global interest in climate-positive investments. “This expansion represents a breakthrough moment in climate finance, unlocking capital for solutions that benefit both people and the planet,” said Dr. Lena Alvarez, Executive Director of the Global Green Bond Facility.

Key Highlights of the Announcement

Expanded funding portfolio to include large-scale nature-based initiatives in climate-vulnerable regions.
Strengthened partnerships with multilateral development banks, environmental NGOs, and national governments.
New technical assistance hub to help emerging economies develop, verify, and issue nature-focused green bonds.
Enhanced impact measurement framework to track emissions reduction, biodiversity restoration, and social co-benefits.
Accessibility for private-sector investors, enabling companies to align with global sustainability frameworks.

Addressing the Global Climate Finance Gap

Experts note that global climate goals cannot be reached without substantial investment in natural systems. Forests, wetlands, agricultural soils, and marine ecosystems collectively remove billions of tons of carbon annually. Yet financing for these ecosystems remains critically low. The GGBF expansion responds to this challenge by directing more capital toward interventions that generate measurable climate mitigation and adaptation benefits.

“Investing in nature is one of the most cost-effective ways to tackle climate change,” said Alvarez. “Our facility is now positioned to catalyze unprecedented levels of green investment—especially for countries facing both ecological degradation and capital constraints.”

Strengthening International Partnerships

The expansion will be supported by collaboration with leading climate-finance bodies and environmental organizations. GGBF confirmed new cooperative frameworks with regional development agencies, sovereign green bond issuers, and conservation-focused institutions to ensure projects meet international environmental and social integrity standards.

A central component of the initiative is the creation of a Global Nature Finance Council, which will convene policymakers, investors, researchers, and civil society organizations to share expertise and evaluate emerging NbS investment models. The council will play a key role in aligning the facility with frameworks such as the Paris Agreement and the Global Biodiversity Framework.

Driving Private-Sector Engagement

In addition to public-sector financing, GGBF aims to encourage increased private-sector participation. Recent studies highlight growing interest among corporations and institutional investors in green bond instruments tied to nature performance indicators. Through transparent metrics and certified reporting systems, the expanded facility will provide private investors with confidence that their capital is supporting scientifically validated, high-impact projects.

The facility will also enable businesses to align their sustainability strategies with globally recognized standards, including the Taskforce on Nature-related Financial Disclosures (TNFD) and the Sustainability Accounting Standards Board (SASB).

Empowering Emerging Economies

A core objective of the expansion is to empower low- and middle-income countries that face significant financing barriers. Through its new Technical Assistance Hub, GGBF will offer:

Support in green bond structuring and certification
Training programs for local financial institutions
Guidance on environmental impact assessments
Tools for sustainable land and water management planning

This will help developing countries unlock new capital, create green employment, and reduce vulnerability to climate impacts such as droughts, floods, and coastal erosion.

Quotes from Global Leaders

Global financial leaders have welcomed the announcement. Maria Gonzales, Climate Finance Advisor at the International Sustainability Coalition, stated, “The Global Green Bond Facility’s expansion is perfectly timed. With nature-based solutions gaining momentum, this structure provides the financial credibility needed to scale long-term environmental impact.”

Similarly, Professor Jason Hsu of the Institute for Climate Economics added, “This initiative not only supports immediate conservation needs but strengthens future economic stability by protecting the natural assets communities rely on.”

Examples of Nature-Based Projects to Receive Funding

GGBF outlined several priority areas that will benefit from the facility’s new financing channels:

Mangrove restoration programs protecting coastlines from extreme weather
Large-scale reforestation projects designed to capture carbon and restore watersheds
Regenerative agriculture initiatives that improve soil health and increase farm resilience
Urban green infrastructure, including parks and flood-absorption systems
Biodiversity hotspot conservation, preserving endangered species and habitats

About the Global Green Bond Facility

The Global Green Bond Facility is an international initiative dedicated to mobilizing capital for sustainable development. Through collaboration with governments, financial institutions, and private-sector partners, the facility promotes high-quality, transparent, and science-based green investment strategies.