Global Green Bond Facility Expands to Finance Nature-Based Solutions
LONDON, October 15, 2025 – The Global Green Bond Facility (GGBF) today announced a major expansion of its financing platform to prioritize nature-based solutions (NbS), committing an additional $2 billion in dedicated capital to projects that restore ecosystems, enhance water security, and protect biodiversity in climate-vulnerable regions.
The move comes as labeled sustainable bond issuance reached a record $6.2 trillion globally by December 2024, with green bonds representing 57% of all new issuances, according to the World Bank. The sector’s resilience is underscored by sustained growth despite macroeconomic headwinds, with global sustainable finance issuance totaling $975 billion in the first seven months of 2025 alone.
“The data clearly shows that nature-based solutions deliver measurable impacts. Between 2012 and 2024, the World Bank financed approximately 250 NbS investment projects that have already benefited 9.5 million people and restored 1.1 million hectares of ecosystems,” said Margaret Chen, CEO of the Global Green Bond Facility. “Our expanded facility will accelerate this momentum by addressing the critical financing gap identified in recent market research.”
The expansion targets three priority areas based on demonstrated impact metrics. First, the facility will allocate $800 million to watershed restoration and water security projects, building on evidence that global investment in NbS for water doubled over the past decade—from $22.4 billion in 2013 to $49 billion by 2023. Second, $700 million will support coastal resilience initiatives, including mangrove restoration and coral reef protection, which have proven effective in reducing flood risks for millions while boosting fishing incomes. Third, $500 million will finance urban green infrastructure, such as the 17-hectare urban park in Mozambique that now protects 50,000 residents from flooding.
The Facility will operate through a blended finance structure, combining public de-risking capital with private investment. This approach responds directly to market analysis showing that while private finance for NbS has grown 30-fold over the past decade, it remains constrained by risk-return profiles and location-specific complexities. The GGBF will deploy proprietary screening tools, including GIS-based risk assessment systems, to identify high-impact opportunities across 100 target cities and 5,000 kilometers of priority coastline.
“Nature-based solutions are no longer niche—they’re essential infrastructure,” Chen added. “Our framework ensures every project meets strict biodiversity net-gain requirements, aligning with emerging standards like the EU Taxonomy and ICMA’s Sustainable Bonds for Nature guidelines. We’re not just financing projects; we’re building a pipeline of bankable, nature-positive assets.”
The initiative has already secured anchor commitments from three European development finance institutions and expects first closings in Q1 2026. Projects will be selected based on their ability to deliver quantified benefits across carbon sequestration, biodiversity enhancement, and community livelihoods, with impact reporting following standardized metrics developed by the Climate Bonds Initiative.
Market analysts note that emerging markets represent a critical growth vector for green bonds, with the sector representing 16% of total labeled bond issuance in 2024. Africa experienced the fastest growth in NbS investment over the past decade, expanding fivefold, while Asia-Pacific remains the largest regional market. The GGBF expansion includes dedicated technical assistance facilities to help municipalities in these regions develop project pipelines and meet green bond standards.
The Facility’s launch aligns with the Kunming-Montreal Global Biodiversity Framework’s Target 19, which calls for mobilizing at least $200 billion annually for biodiversity by 2030. Current estimates indicate the global biodiversity financing gap remains in the trillions, with only 10% of protected area funding reaching Asia despite urgent need.
About the Global Green Bond Facility
The Global Green Bond Facility is a leading climate finance platform dedicated to scaling investment in nature-based solutions and low-carbon infrastructure. Founded in 2021, the GGBF has mobilized over $3.5 billion across 45 countries, focusing on projects that deliver measurable climate resilience, biodiversity net gain, and sustainable livelihoods. The Facility operates as a public-private partnership, providing technical assistance, risk mitigation, and standardized impact frameworks to accelerate the development of bankable green assets in emerging markets.
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