Nature-based solutions (NbS) — interventions that use natural ecosystems to address climate change while delivering co-benefits for biodiversity and communities — are receiving unprecedented attention from climate finance. The global NbS market reached $8.7 billion in 2025, and the intersection with tourism economics is creating powerful synergies.
The Dual Dividend
NbS projects deliver a dual dividend for tourism destinations. First, they sequester carbon and enhance climate resilience — addressing the physical risks that climate change poses to tourism infrastructure and natural attractions. Second, they restore and enhance the natural landscapes that attract visitors.
Mangrove restoration illustrates this dual dividend clearly. Restored mangrove forests sequester carbon at rates 3-5 times higher than terrestrial forests per hectare. They simultaneously protect coastal tourism infrastructure from storm surge, support fisheries that supply tourism hospitality operations, and create kayaking and wildlife viewing opportunities.
Climate Finance Flowing to Tourism Destinations
The Green Climate Fund (GCF), the Global Environment Facility (GEF), and bilateral climate finance channels are increasingly funding NbS projects in tourism-dependent developing countries. The Caribbean, Pacific Islands, and Southeast Asian nations are primary beneficiaries.
The Maldives has secured over $50 million in climate adaptation finance that directly supports coral reef restoration, mangrove rehabilitation, and coastal defense — all of which sustain the country’s $4.5 billion tourism economy.
Fiji’s Mangrove Restoration Initiative, co-funded by the GCF and New Zealand, is restoring 2,000 hectares of degraded mangrove forests along the tourism-heavy Coral Coast, combining climate adaptation with tourism amenity enhancement.
Peatland Conservation in Southeast Asia
Tropical peatlands store twice as much carbon as all the world’s forests combined. Indonesia’s peatlands alone contain an estimated 57 billion tonnes of carbon. When drained for agriculture, these peatlands become massive emission sources and fire hazards — the haze events that periodically close airports and devastate tourism across Southeast Asia originate primarily from peat fires.
Peatland conservation and restoration in Sumatra and Kalimantan therefore serves a triple purpose: climate mitigation, air quality improvement, and tourism protection. The economic case for peatland conservation — measured in avoided tourism losses from haze events alone — exceeds $3 billion annually.
Challenges and Risks
NbS projects face risks including permanence (restored forests can burn), additionality (projects may claim credit for conservation that would have happened anyway), and governance (community rights must be respected). Climate finance standards are evolving to address these risks, but the integrity framework remains a work in progress.
Outlook
NbS investment is projected to reach $25 billion by 2030 as climate finance mobilization accelerates. Tourism destinations that strategically align NbS investments with their tourism development strategies will benefit from enhanced natural assets, improved climate resilience, and diversified revenue streams.