Call: The economics of nature-based solutions: cost-benefit analysis, market development and funding
|Type of Fund||Direct Management|
of programme |
"Horizon Europe - Cluster 6 - Destination 1: Biodiversity and Ecosystem Services"
The EU biodiversity strategy for 2030 is a cornerstone of the European Green Deal that will put Europe’s biodiversity on the path to recovery by 2030, for the benefit of people, the climate and the planet. It will also prepare the EU to take a leading role in the upcoming international negotiations on a new global framework to halt biodiversity loss. With the Green Deal’s ‘do no significant harm’ vision, all EU policies will become more biodiversity-friendly, focusing more on the sustainable use of ecosystems, supporting the recovery in a post-pandemic world[[COM/2020/380 EU biodiversity strategy for 2030: Bringing nature back into our lives]]. This policy vision is fully supported in the strategic plan of Horizon Europe for 2021-2024 in its first key strategic orientation ‘Protecting and restoring ecosystems and biodiversity and managing sustainably natural resources on land and at sea, and achieving climate neutrality and adaptation’. Consequently, Destination ‘Biodiversity and ecosystem services’ intends to achieve the following expected impact from Cluster 6 ‘Biodiversity is back on a path to recovery, and ecosystems and their services are preserved and sustainably restored on land, inland water and at sea through improved knowledge and innovation’. All actions funded under this destination must therefore help to deliver this main impact.
Research and innovation is key to delivering results that will have an important impact on biodiversity, food, health, water and climate, which are all interconnected, and to achieving the goal of healthy and resilient ecosystems by 2030. It will also enable transformational change engaging European society and economy and their global impacts, making decisions more biodiversity-friendly. R&I will support policy targets, develop nature-based solutions[[Nature-based solutions are “inspired and supported by nature, which are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more, and more diverse, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systemic interventions. Hence, nature-based solutions must benefit biodiversity and support the delivery of a range of ecosystem services.”]] and holistic approaches to address the main causes of biodiversity loss, particularly in connection to production systems, bringing all sectors together to be integrated in ecosystem-based management. Investments in R&I will help to protect and restore the integrity of terrestrial, aquatic and marine ecosystems, currently under multiple pressures, and protect and restore their capacity to deliver a wide range of essential services. Under Horizon Europe, a long-term strategic research agenda for biodiversity will also be developed.
The sixth mass extinction is taking place: one million species are at risk of extinction, and the degradation of ecosystems severely affects the fabric of life that enables the survival of humankind[[IPBES global assessment (2019). Summary for policy-makers.]]. None of the globally agreed targets of the 2011-2020 strategic plan for biodiversity has been fully achieved[[United Nation’s 5th Global Biodiversity Outlook (2020).]], with the biodiversity crisis even deepening. Our knowledge on biodiversity status, pressures, impacts and responses needs to be improved, requiring even basic taxonomic work in certain ecosystems. Understanding biodiversity decline and addressing its main drivers through data-driven science, integrated multidisciplinary knowledge, new tools, models and scenarios, will support Europe’s policy needs and boost global biodiversity science. Solutions for preventing and addressing the individual and cumulative effect of direct drivers of biodiversity loss (land use change, overexploitation, climate change, invasive species, pollution) need to be further developed and made available to policy makers and practitioners, such as through the new EC Knowledge Centre for Biodiversity[[https://knowledge4policy.ec.europa.eu/biodiversity_en]]. For more impact on society and economic sectors, citizen science and crowdsourcing also require big data analysis, artificial intelligence, social sciences, communications and policy tools.
Valuing and restoring biodiversity and ecosystem services is necessary to develop tools to guide decisions, inform and implement policies on the environment, water, health, climate, disaster risk reduction, agriculture, forests and other land use types, protected areas management, the sustainable bioeconomy, the blue economy, maritime and cross-sectoral spatial planning, and responsible business practices. The continued degradation of the ecosystems and their services affects biodiversity and climate change[[https://www.nature.com/articles/s41558-020-0738-8]], and increases the risk of severe ecological disasters and pandemics. The European Green Deal and its biodiversity strategy call for urgent action to restore damaged aquatic and terrestrial ecosystems in order to increase biodiversity and deliver a wide range of ecosystem services.
The contribution of ecosystems to human wellbeing and the economy is not properly accounted for in market transactions, or in planning and investment decisions: the social and economic co-benefits of healthy ecosystems are often disregarded. Natural capital accounts need to be developed and mainstreamed. Investments in R&I will also lay the ground for scaling up and speeding up the implementation of technological, societal and nature-based solutions (NBS). NBS support vital ecosystem services, biodiversity and biomass provision, as well as access to drinking water, clean soil, improved livelihoods, healthy diets and food safety and security from sustainable food systems. NBS deployment will also create green jobs and build resilience to climate change and natural disasters. Citizens, authorities, businesses, social partners and the research community must be engaged at local, regional, national and European levels.
Managing biodiversity in primary production: Biodiversity is the basis for sustainable and resilient agriculture, fisheries, aquaculture and forestry, as also recognised in the farm to fork and biodiversity strategies under the Green Deal. With diverse genetic resources, it is possible to use in primary production plants and animals that are adapted to different environments, ecosystems and meet diverse needs. Furthermore, the interplay between species below and above ground delivers important ecosystem services, such as pollination, soil fertility, pest and risk control. Despite these recognised benefits, current production systems tend to be specialised and rely on a limited number of crops, breeds and forest tree species whose genetic basis is narrow. Reversing this trend and increasing their resilience is critical and of global concern in particular in the current context of accelerated climate change and a growing population whose production and consumption footprint is increasing.
Enabling transformative change [[Transformative change has been defined by IPBES as “A fundamental, system-wide reorganization across technological, economic and social factors, including paradigms, goals and values”. IPBES global assessment (2019). Summary for policy-makers.]] in biodiversity: Science (IPBES and IPCC) and Policy (the global post-2020 biodiversity framework and the EU biodiversity strategy) clearly underline that biodiversity loss can only be successfully addressed if transformative changes are initiated, accelerated, and up-scaled. There is however hardly any knowledge on potentials and challenges arising from transitions focused on biodiversity. System-level change of this kind starts with social innovation in the form of, for example, regulations, incentives, local and participatory processes, and through the introduction of new technologies, new production processes, or new consumer products, which change how socio-technical and socio-ecological systems operate and impact their environment. Such transformative change must decrease the impacts of indirect drivers of biodiversity loss, which are in turn, underpinned by societal values and behaviours. Indirect drivers of biodiversity loss are understood to mean here: production and consumption patterns, human population dynamics and trends (including their footprints), trade, technological innovations, and local to global governance (including financing). Research and innovation can enable these transformative changes to happen and initiate processes, behaviour changes and actions which are transforming the way we impact biodiversity. Socio-economic and multidisciplinary research, including on the role of education, will develop knowledge and tools to understand the role of transformative change for biodiversity policy making, address the indirect drivers for biodiversity loss, and accelerate transformative changes in our society that are relevant to biodiversity.
Interconnecting biodiversity research and supporting policies refers to the establishment of the European Partnership ‘Rescuing biodiversity to safeguard life on Earth’ and to the support to other science-policy interfaces. The European partnership on biodiversity[[https://www.biodiversa.org/1759]] will connect national, local and European research, innovation and environmental programmes, combining resources in support of one goal, i.e. that by 2030 biodiversity in Europe is back on the path to recovery. It will co-develop multidisciplinary research and innovation programmes with stakeholders, set up a European network of coordinated observatories for biodiversity monitoring, and implement a broad range of activities to increase the relevance, impact and visibility of EU research and innovation in tackling the biodiversity crisis in line with the EU biodiversity strategy for 2030.
Science-policy interfaces on biodiversity and nature-based solutions have made good progress in recent years[[Good leverage effects have been achieved, notably through EKLIPSE, Oppla, the NBS platform, the EU4IPBES support action 2018-2021.]], and must be stepped up to achieve targeted impacts on biodiversity-relevant policies, that can in turn be used as structured policy input into the research cycle. These interfaces are also key to guiding biodiversity governance, and to implement the EU Green Deal and international conventions[[In particular, the UN Convention on Biodiversity, and the Sustainable Development Agenda 2030]]. In line with the Commission priority 'A stronger Europe in the world', the EU must take and demonstrate leadership in this field, notably by increasing its support to IPBES[[The Intergovernmental science-policy Platform on Biodiversity and Ecosystem Services]] -to bring it up to the same level as the IPCC-, and to the Convention on Biological Diversity. Besides economic support, this also includes efforts to create synergies and cooperation between IPBES, regional Multilateral Environmental Agreements and other relevant research communities to ensure a full coverage of all relevant aspects of biodiversity and ecosystem services in order to underpin the full scope of the post 2020 global biodiversity framework.
All topics will directly contribute to the EU biodiversity strategy for 2030 and to the Sustainable Development Goals (SDGs) 13, 14, 15, 17.
Several missions will also help to achieve biodiversity-related impacts, notably in the areas of ‘Adaptation to climate change including societal transformation’, ‘Climate-neutral and smart cities’, ‘Ocean, seas and waters’ and ‘Soil health and food’.
Proposals for topics under this destination should set out a credible pathway contributing to Biodiversity and Ecosystem Services, and more specifically to one or more of the following impacts:
When considering the impact of the proposals, their compliance with the ‘do no significant harm’ principle[[As per Article 17 of Regulation (EU) No 2020/852 on the establishment of a framework to facilitate sustainable investment (EU Taxonomy Regulation)]] has to be assessed. Also it has to be ensured that the research and innovation activities do not cause a significant harm to any of the six environmental objectives of the EU Taxonomy Regulation.
The portfolio of actions under this destination will have impacts in the following areas: “Enhancing ecosystems and biodiversity on land and in waters”; “Climate change mitigation and adaptation”; “Clean and healthy air, water and soil”; “Sustainable food systems from farm to fork on land and sea”; and “A resilient EU prepared for emerging threats”.
|Link||Link to Programme|
The economics of nature-based solutions: cost-benefit analysis, market development and funding
of call |
"The economics of nature-based solutions: cost-benefit analysis, market development and funding"
A successful proposal will support the development of policies, business models and market conditions to scale up and speed up the implementation of nature-based solutions (NBS). It will contribute to the wider deployment of NBS and to fully reaping their economic, employment, social and environmental benefits in order to build a competitive sustainability in Europe and to tackle climate change. NBS contribute to the EU biodiversity strategy for 2030 and other Green Deal priorities, by supporting biodiversity and vital ecosystem services: climate change mitigation and enhancement of carbon sinks, biomass provision, access to fresh water, clean soil, healthy diets and lifestyles and sustainable food systems. NBS deployment will also create green jobs and build resilience to climate change and natural disasters.
Successful proposals will contribute to all following expected outcomes:
Developing markets for NBS has proved a continuing challenge. NBS investments are many and varied, with their benefits and costs differing by project type and context. They produce a range of benefits, many of which are public goods with limited revenue streams that may accrue to different stakeholder groups. Detailed understanding of these benefits is lacking. The same is true for potential economic benefits resulting from avoidance or reduction of costs due to NBS intervention (such as those related to insurance, penalty or capital costs). In addition, the variety of NBS and their context-specific nature across urban, periurban and rural realms, makes it difficult to predict reliably their commercial prospects. These features make financing of NBS projects challenging and investment from the private sector particularly so. As a result, funding of NBS has typically focused on a narrow range of public sources. Addressing knowledge gaps about the economic and financial performance of NBS investments, in combination with trialling the development of business cases and models for NBS implementation is particularly urgent in the current context where NBS need to be exponentially scaled up to meet the policy priorities of the European Green Deal. Despite growing interest in NBS, upscaling NBS investment would require better understanding of different return on investment (ROI) models while accounting for indirect revenue streams associated with NBS (e.g. lower insurance costs for local government from investment in flood defences). The successful proposal should:
Proposals should address all of the above points.
This topic should involve the effective contribution of SSH disciplines.
Collaboration with the Biodiversity Partnership (HORIZON-CL6-2021-BIODIV-02-01) is expected in the context of reinforcing the knowledge base for assessing, developing and deploying nature-based solutions.
Applicants should create synergies with projects under the same topic and other relevant ongoing or up-coming projects, notably the Horizon 2020 NBS project portfolio and its task forces; HORIZON-CL6-2021-BIODIV-01-06: Nature-based solutions, prevention and reduction of risks and the insurance sector; HORIZON-CL6-2022-BIODIV-01-03: Network for nature: multi-stakeholder dialogue platform to promote nature-based solutions; HORIZON-CL6-2022-COMMUNITIES-01-05: Assessing the socio-politics of nature-based solutions for more inclusive and resilient communities; HORIZON-CL6-2022-COMMUNITIES-02-02-two-stage: Developing nature-based therapy for health and well-being; HORIZON-CL6-2021-COMMUNITIES-01-06: Inside and outside: educational innovation with nature-based solutions.
To this end, proposals should include dedicated tasks and appropriate resources for coordination measures, foresee joint activities and joint deliverables.
Proposals should ensure that all evidence, information and project outputs are accessible through the Oppla portal (the EU repository for NBS).
|Link||Link to Call|
|Thematic Focus||Research & Innovation, Technology Transfer & Exchange, Capacity Building, Cooperation Networks, Institutional Cooperation, Clustering, Development Cooperation, Economic Cooperation, Digitisation, ICT, Telecommunication, Green Technologies & Green Deal, Climate, Climate Change, Environment & Biodiversity, Agriculture & Forestry, Fishery, Food, Circular Economy, Sustainability, Natural Resources, Administration & Governance, Rural & Peripheral Development, Competitiveness, SME|
|Funding area|| EU Member States |
Overseas Countries and Territories (OCTs)
|Origin of Applicant|| EU Member States
Overseas Countries and Territories (OCTs)
|Eligible applicants||Research Institution, International Organization, Small and Medium Sized Enterprises, SMEs (between 10 and 249 employees), Microenterprises (fewer than 10 employees), NGO / NPO, Public Services, Other, Start Up Company, University, Enterprise (more than 250 employees or not defined), Education and Training Centres|
|Applicant details|| |
eligible non-EU countries:
At the date of the publication of the work programme, there are no countries associated to Horizon Europe. Considering the Union’s interest to retain, in principle, relations with the countries associated to Horizon 2020, most third countries associated to Horizon 2020 are expected to be associated to Horizon Europe with an intention to secure uninterrupted continuity between Horizon 2020 and Horizon Europe. In addition, other third countries can also become associated to Horizon Europe during the programme. For the purposes of the eligibility conditions, applicants established in Horizon 2020 Associated Countries or in other third countries negotiating association to Horizon Europe will be treated as entities established in an Associated Country, if the Horizon Europe association agreement with the third country concerned applies at the time of signature of the grant agreement.
Legal entities which are established in countries not listed above will be eligible for funding if provided for in the specific call conditions, or if their participation is considered essential for implementing the action by the granting authority.
|Project Partner Details|| |
Unless otherwise provided for in the specific call conditions , legal entities forming a consortium are eligible to participate in actions provided that the consortium includes:
|Further info|| |
Proposal page limits and layout:
The application form will have two parts:
Page limit - Part B: 45 pages
|Type of Funding||Grants|
|Financial details|| |
|Submission||Proposals must be submitted electronically via the Funding & Tenders Portal Electronic Submission System. Paper submissions are NOTpossible.|