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Unlocking Financial Potential for Urban Nature‐Based Solutions: A PRISMA‐Based Systematic Review

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  • Maruf Ahmad
  • Jinfeng Du

Abstract

Contemporary urbanization has intensified environmental, social, and economic challenges, underscoring the need for Nature‐Based Solutions (NBS) to address issues of urban carbon emission, flooding, stormwater management, heatwaves, and biodiversity loss. However, securing funding for NBS implementation and maintenance remains a critical barrier. This study systematically reviews 121 financial‐related scholarly literature on urban NBS, applying the PESTLE (political, economic, social, technological, legal, and environmental) method to identify barriers to financial innovation and implementation. To ensure reliability, countermeasures cited in at least three independent sources were included. Key financial barriers for urban NBS include unstandardized valuation metrics (19%), insufficient financing mechanisms (15%), and regulatory limits (11%). This review also highlights countermeasures such as economic valuation (8%), innovative finance modalities (8%), tax benefits, and community workshops (7%) that can address these barriers. The study's uniqueness lies in how financial resource alignment and regulatory support, guided by Resource‐Based View and Institutional Theory, can promote sustainable NBS adoption. It also calls for standardized valuation metrics and adaptive monitoring systems to improve the social, environmental, and economic impact of NBS, making them more attractive to investors and ensuring long‐term sustainability. These findings provide actionable insights for financial restructuring and urban planners to effectively bridge funding gaps and promote sustainable environmental financing.

Suggested Citation

  • Maruf Ahmad & Jinfeng Du, 2026. "Unlocking Financial Potential for Urban Nature‐Based Solutions: A PRISMA‐Based Systematic Review," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 510-532, February.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:1:p:510-532
    DOI: 10.1002/sd.70243
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