What is natural infrastructure?
Natural (or green) infrastructure is a planned or managed natural or semi natural system (such as mangroves or wetlands) that can help companies harness ecosystem services as a substitute to so-called gray infrastructure (such as dams or water treatment plants).
There is a strong business case for companies to invest in natural infrastructure solutions. Natural infrastructure can help companies harness the services that nature offers (ecosystem services) as a substitute to gray infrastructure. They may provide more benefits than gray infrastructure, while fulfilling the same function, being equally efficient, and providing the same level of performance. By investing in natural infrastructure, companies can reduce costs, improve operations, generate financial gains, or enhance their reputation.
Examples of natural infrastructure
Creating or restoring wetlands on the banks of rivers and streams can both increase biodiversity and be more cost-effective than stormwater control measures created with gray infrastructure. Oyster reefs, another NI solution, can reduce coastal erosion and protect businesses from storm surges, while also filtering contaminated seawater and supporting local fisheries.
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Drivers, applications, and benefits of natural infrastructure solutions
Business drivers for the use of natural infrastructure solutions
Infrastructure is fundamental to economic growth, and businesses are continually looking for more cost‑effective and better-performing infrastructure solutions. New and emerging business drivers are causing businesses to seek out natural infrastructure solutions.
Resource limitations
Businesses operate under financial, human, and natural resource limitations. Securing these resources is critical for business continuity and growth. Natural infrastructure solutions can often address all three resource limitations. Examples of case studies:
Financial resources: Natural Reclamation and Erosion Control for Onshore Pipelines
Natural resources: Multifunctional Field Margins – Enhancing Biodiversity in Agricultural Landscapes
Human resources: Park 500 Natural Treatment System
Regulatory requirements
NI solutions can offer cost-effective ways for addressing regulatory requirements. Increasingly, regulators are recognizing the role of natural infrastructure in delivering a wide range of co-benefits to society and are promoting the use of natural infrastructure solutions by businesses.
For example, see case study Aquisafe Project: Mitigation of Contaminants to Protect Water Resources in Rural and Semi-rural Areas Using Buffer Zones
Changing climate and severe weather events
Businesses are increasingly facing risks from climate change. Natural infrastructure solutions can offer increased resilience to these hazards or a means to adapt to future hazards.
For example, see case study Coastal Pipeline Erosion Control Using Living Shorelines and Oyster Reefs
Stakeholder concerns
Natural infrastructure solutions can effectively address stakeholder needs, such as local communities’ or local authorities’ concerns about environmental protection and enhancement, scarcity of natural resources, or climate change impacts that can increase exposure to natural disaster.
For example, see case study Restoration of the Old Rhine River
Business applications of natural infrastructure solutions
Natural infrastructure solutions have numerous business applications to address various business drivers.
Treat Industrial Process Water and Wastewater
Constructed wetlands have been used for industrial process water and wastewater treatment, substituting for traditional wastewater treatment infrastructure.
Photo from case study: Produced Water Treatment Using Reed Beds (Petroleum Development Oman LLC)
Rehabilitate Degraded Land
After disturbance (recent or historical), land is returned to its native state to restore habitat, improve biodiversity, restore natural functions (i.e. groundwater replenishment), or secure land productivity.
Photo from case study: Multifunctional Field Margins in Agricultural Landscapes – Enhancing Biodiversity for Sustainable Intensive Agriculture (Syngenta)
Remediate Contaminated or Polluted Areas
Phytoremediation with green plants and their microorganisms is often used to reduce contamination in water or soils.
Photo from case study: Phytoremediation as a Sustainable Approach for Groundwater Contaminated with 1,4-dioxane (The Dow Chemical Company)
Reduce Risk and Build More Resilient Infrastructure
Wetland habitats and living shorelines can be used to augment and strengthen gray infrastructure, reduce flood risk, protect shorelines from erosion caused by waves, and create habitat.
Photo from case study : Coastal Pipeline Erosion Control Using Living Shorelines and Oyster Reefs (Shell Pipeline Company LP)
Manage Stormwater
Green roofs, rain gardens, and bioswales have been used in cities and industrial parks to complement stormwater conveyance systems.
Photo from case study: Green Roof and Water Management in Philippines Government Office Building (LafargeHolcim Philippines)
Secure Access To Water In Quantity and Quality
Natural treatment systems have been installed to protect drinking water sources from impacts of agriculture.
Photo from case study: Aquisafe Project: Mitigation of Contaminants to Protect Water Resources in Rural and Semi-rural Areas Using Buffer Zone (Veolia)
Business benefits and co-benefits from natural infrastructure solutions
Natural infrastructure solutions may also generate environmental and social co-benefits inherent to natural infrastructure solutions. As a result, when businesses’ financial benefits from natural infrastructure and gray infrastructure are similar, quantifying co-benefits often reveals that the natural infrastructure solutions provide greater overall benefits than gray infrastructure.
Direct financial benefits
Natural infrastructure solutions can maintain or enhance the value of land, property, and infrastructure assets. They also often have fewer initial capital expenditures, reduced long-term O&M costs, or both, when compared to gray infrastructure alternatives. Examples include:
Environmental co-benefits and associated operational, financial and reputational gains
Typically, natural infrastructure solutions not only have a smaller environmental footprint but also enhance the environment as compared to gray infrastructure because they are nature-based and self-regenerating. Examples include:
Social co-benefits and associated operational, financial and reputational gains
Businesses see operational, financial, and reputational gains from social co-benefits generated when employing NI solutions. These co-benefits can increase the quality of life in the local and global communities where the business operates, and build strong company ties with the neighbouring communities. Examples include:
Incentives for Natural Infrastructure
The report “Incentives for Natural Infrastructure,” together with related recommendations, details a study conducted across different sectors in six regions in 2016 (Asia, Australia, Europe, Latin America, Middle East and North America) to uncover the barriers and incentives for businesses obtaining permits, financing and insurance for natural infrastructure.
According to the report, the most common incentives for investing in natural infrastructure include cost savings, environmental and social benefits that go beyond financials and alignment with policy frameworks. The most significant barriers to permitting and financing for natural infrastructure include technical feasibility and revenue generation. It shows that business has a key role to play in demonstrating the effectiveness of NI solutions and engaging with stakeholders who can influence financing and permitting.
In efforts to help businesses overcome such challenges, the report provides a set of recommendations for:
- Collaborating with local authorities about obtaining permits for NI
- Engaging with the finance community to increase financing of NI
- Promoting policies and risk reduction benefits of NI
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