To support an ambitious and effective outcome at the FfD4, IISD offers targeted recommendations across seven key areas of the draft outcome document. These recommendations are grounded in our extensive work on domestic resource mobilization, private and public finance, debt sustainability, trade, and systemic reform. They aim to help negotiators identify actionable improvements to the First Draft and ensure FfD4 delivers concrete progress in aligning global financial flows with sustainable development, climate resilience, and equitable economic transformation.

How does natural infrastructure support water outcomes and solutions across the Canadian Prairies?

From flood, to drought, to water quality, this report investigates the performance and real-world application of natural infrastructure on the Prairies. By combining evidence with practical insights, the report equips practitioners, communities, and decision-makers with the knowledge needed to deliver nature-based solutions that truly work. 

Find out how natural and constructed assets are helping protect against floods, improve water quality, and support water supply and drought mitigation, while simultaneously delivering social, economic, and environmental co-benefits. 

Our research describes the key water-related benefits and performance of 17 types of natural infrastructure relevant to the Canadian Prairies. These include eight natural assets—both conserved and restored ecosystems—and nine constructed assets. The assets are organized into four functional families based on the shape (morphology) and position of natural infrastructure assets on the landscape and their role in water management, which includes:

• conserving and restoring vegetative cover,
• managing surface water with basins,
• protecting watercourses, and
• safeguarding groundwater recharge. 

This report dives into which types of natural infrastructure work best within rural and urban landscapes and how they perform—unpacking the benefits of 17 types of natural infrastructure for Prairie water resilience, including grasslands, wetlands, riparian areas, aquifers, streambank bioengineering, soil cells, permeable pavements, and bioswales.

As Prairie water needs grow, natural infrastructure will need to complement conventional "grey" infrastructure, such as pipes and treatment plants, to support the delivery and enhancement of infrastructure services. This report provides practical guidance on specific natural infrastructure options that can support Prairie water needs, while boosting regional resilience.

Natural infrastructure takes many forms—from wetlands to bioswales, floodplains to aquifers—and protecting, restoring, and enhancing these features is a smart, proven path to a stronger, more water-resilient future across the Prairies.

This report was developed by IISD's Natural Infrastructure for Water Solutions (NIWS) initiative and the Alberta Low Impact Development Partnership (ALIDP). 

The loss of natural water storage on Canadian Prairie landscapes over time has resulted in reduced water availability during dry years and greater flooding during wet years. With our changing climate, more frequent prolonged dry periods and more extreme rainfall events exacerbate these issues. 

Natural infrastructure that promotes water retention, like wetlands or small naturalized dams, is widely recognized for providing a multitude of benefits that can help us adapt to our changing climate on the Canadian Prairies. These benefits include reducing the risks of both floods and droughts, improving water quality, creating habitats and improving biodiversity, and reducing atmospheric carbon, along with a variety of other economic benefits that make water retention an investment with a strong return. However, the wealth of benefits offered by water retention may only be achieved alongside careful site design, maintenance, and operation. Analytical practices that quantify flood mitigation for water retention site designs are common, but benefits like phosphorus reduction are often only qualitatively assessed. 

Phosphorus reduction analyses and site selection for new water retention projects need to consider both the spatial variability of water quality across the landscape and the performance of potential sites in treating that water. These considerations allow us to better assess and maximize the water quality benefits at a given cost. Spatial targeting models like Prioritize, Target, and Measure Application (PTMApp) help us respond to this need, but strategies for developing and using these models that respect the unique characteristics of the Canadian Prairies are required.

In Sekondi-Takoradi, Ghana, climate change and rapid urbanization have increased the frequency and severity of flooding, causing widespread damage to homes, infrastructure, and ecosystems. Heavy rains frequently overwhelm the city’s drainage systems, cutting off communities and threatening lives and livelihoods—especially in vulnerable low-lying areas. 

In collaboration with the Covenant of Mayors in Sub-Saharan Africa, the NBI Global Resource Centre assessed the social, environmental, and economic outcomes of interventions aimed at improving flood resilience in Sekondi-Takoradi. The assessment compares a business-as-usual scenario with a hybrid approach (nature-based and grey infrastructure), with a focus on two priority locations—Sekondi Market and Bakado—that are highly exposed to flood risks. 

The project valuation quantified the environmental, social, and economic impacts of the proposed hybrid interventions, which include wetland restoration, tree planting, green space development, urban gardens, and improved drainage systems. 

Using spatial modelling, climate scenarios, and cost-benefit analysis, the valuation estimated the benefits of implementing the hybrid infrastructure compared to a no-action scenario, including:

• increased water retention and reduced flood damage
• increased carbon sequestration
• improved health outcomes and air quality
• increased land valuation
• reduced infrastructure maintenance due to flood damage
• local job creation and skills development 

Results indicate that for every USD 1 invested in hybrid infrastructure, the project returns between USD 3.26 and USD 13.53, depending on the flood valuation (low, high or average economic value). The avoided costs from flood damage are the primary driver of economic benefits, ranging from USD 163.29 million in the scenario with limited floods to USD 747.11 million in the scenario with severe flood damage. 

The results will support Sekondi-Takoradi Metropolitan Assembly and its partners in making informed investment decisions, aligning local policy with climate priorities, and potentially securing funding for future implementation.

Who is the target audience of the handbook? 

The target audience of the handbook includes infrastructure planners, policy-makers, analysts, researchers, decision-makers, and financial institutions involved in project evaluation and sustainability assessment. The handbook is meant for professionals who are new to the concept of CBA and for experienced practitioners. 

How can integrated CBAs help scale NbS and provide societal benefits? 

CBAs are important because they help to understand the economic, social, and environmental value of NbS and enable informed infrastructure decisions. By quantifying the monetary value of ecosystem services and co-benefits, decision-makers can better compare NbS with traditional infrastructure. Integrated CBAs offer a comprehensive framework for evaluating both tangible and intangible benefits. 

What is the SAVi methodology? 

The SAVi methodology is a robust approach developed by IISD for creating integrated economic valuations of infrastructure projects, particularly NbS. It offers a systemic, step-by-step process for assessing NbS, encompassing systems thinking, climate data analysis, quantitative modelling, and financial modelling. SAVi aims to provide a comprehensive understanding of the value of NbS by considering their economic, social, and environmental impacts.

Based on the handbook, what are the seven steps for developing a CBA? 

1. Preparation for NbS valuation
2. Systemic contextualization of NbS
3. Identifying costs and benefits for quantitative analysis
4. Analyzing the climate context
5. Quantifying and monetizing the costs and benefits
6. Identifying potential financing structures
7. Communicating the findings of NbS 

What key concepts and methods are covered in the handbook? 

The handbook explains how to identify costs and benefits for a CBA through systems thinking, how to quantify and monetize these costs and benefits, and how to analyze the climate context of NbS projects. Various modelling techniques are explored, including spatial modelling, Excel-based modelling, and system dynamics modelling. The handbook also discusses potential financing structures and strategies for effectively communicating the findings to various stakeholders. It emphasizes the importance of systems thinking and includes case studies of NbS projects around the world. 

Where can readers learn more about CBAs for NbS? 

IISD has developed the SAVi methodology for NbS and applied it to diverse projects as part of the Nature-Based Infrastructure (NBI) Global Resource Centre. Additional SAVi case studies and learning materials are available on the NBI Global Resource Centre and NBI Academy websites.

NbS have emerged as a crucial concept for addressing socio-economic and environmental challenges by protecting, conserving, restoring, and sustainably using and managing natural and modified ecosystems. Recognized for their potential to simultaneously enhance human well-being, ecosystem services, resilience, and biodiversity, NbS are increasingly incorporated into national climate and biodiversity policies, including nationally determined contributions, national biodiversity strategies and action plans (NBSAPs), and national adaptation plans. 

Additionally, NbS are explicitly reflected in the targets of the Kunming-Montreal Global Biodiversity Framework, emphasizing their role in mitigating climate change impacts and enhancing nature's contributions to people. As countries update their NBSAPs to align with the framework’s goals, debates have emerged regarding the definition, implementation, and safeguards of NbS to prevent adverse environmental and social impacts and ensure equitable outcomes. 

The background note analyzes two key international standards and guidelines—the International Union for Conservation of Nature (IUCN) Global Standard for NbS and the Convention on Biological Diversity (CBD) Voluntary Guidelines for the Design and Effective Implementation of Ecosystem-based Approaches for Climate Change Adaptation and Disaster Risk Reduction—comparing their principles, safeguards, and implementation requirements and showing similarities, differences, gaps, as well as the interrelationships and commonalities between the two existing international standards. Aimed at policy-makers and practitioners, the note offers insights into the holistic understanding of the available guidance on the design and implementation of NbS and ecosystem-based approaches. It also provides guidance on how to select appropriate NbS criteria, norms, standards, and guidelines for project use or for multilateral negotiations, fostering a comprehensive understanding for effective and equitable NbS implementation. 

This publication was developed by the International Institute for Sustainable Development (IISD) in collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and with support from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.

Responsible investment in agribusinesses, including crop producers, processors, and traders, can drive innovation, improve market linkages, and contribute to local economies. These outcomes are amplified when agribusinesses align their operations with the Committee on World Food Security's Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI).

This case study is related to the Smallholder Safety Net Up-scaling Programme (SSNUP), which brings together investors to promote sustainable, climate-smart farming practices and improve food security and living standards in developing countries. It is part of a series that aims to analyze how well investees perform and comply with international standards for responsible business conduct, such as CFS-RAI.

Unlike other case studies in this series, UNI2 is a microfinance institution and not an agribusiness. It lends to both urban and rural clients, including agricultural value chain actors. We have included UNI2 to test the versatility and applicability of the Responsible Agricultural Investment (RAI) Tool beyond agribusinesses.

We also evaluated UNI2's alignment with responsible investment principles using an adapted methodology. This included a self-assessment by their management team, as well as interviews facilitated by the International Institute for Sustainable Development to examine the institution's practices and support for responsible behaviours among investees.

UNI2's participation offers valuable insights into how the RAI Tool could be adapted for financial intermediaries, as well as other industries, especially in the primary sector. UNI2 also provided feedback on specific indicators, such as those related to pricing and hiring policies, and made suggestions for improvements in the tool’s scoring and filtering mechanisms. These suggestions were incorporated into later versions of the tool.

The case study illustrates how financial institutions like UNI2 can contribute to responsible agricultural investment, not only through providing capital but also by influencing practices, supporting responsible behaviours, and sharing knowledge to scale sustainable approaches across rural economies.

In this best practices series on legal tools for responsible investment in agriculture, the International Institute for Sustainable Development (IISD) analyzes key legal and policy issues arising from the legal instruments that states use to govern responsible investment in agriculture and food systems.

Ideally, investments in the agricultural sector should be governed by a robust and comprehensive framework of domestic laws; however, in many developing countries, existing laws fail to address all relevant issues in sufficient detail. In such contexts, governments can and do use agricultural investor–state contracts to address gaps, overlaps, and inconsistencies in existing legislation. However, the use of investor–state contracts as a key form of investment governance can also present certain risks when these instruments are poorly drafted or favour one party over the other.

As governments increasingly look to strengthen the legal frameworks regulating investment in the agricultural sector, using a model contract can help them negotiate and design investment contracts that are more comprehensive and balanced than they might otherwise have been. This practice can also help ensure consistency in rights and obligations included in investor–state contracts and that these contracts are fully consistent with domestic law.

This bulletin provides an overview of model contracts and how they can help agricultural investment negotiators, state lawyers, and policy-makers address certain investment-related risks and advance sustainable development objectives in the agricultural sector. It highlights how such instruments have been used to meet these objectives in the agriculture and extractives sectors. It presents some important considerations for policy-makers contemplating developing a nationally tailored model contract that reflects and integrates international best practices, national development priorities, and investment processes.

Growing international understanding that fossil fuel subsidies tend to cause over-production and over-consumption of fossil fuels is, in turn, increasing interest in disciplining the use of such subsidies through international agreements between governments willing to engage in a deeper and more ambitious fossil fuel subsidy reform. While such agreements might take different forms and shape depending on their parties, ranging from some provisions in free trade agreements to agreements more specifically focused on this topic, any international agreement on fossil fuel subsidies would require the consideration of a number of building blocks.

In this report, we discuss six potential building blocks for any such agreement. For each building block, we identify a series of options and choices for negotiators to consider and also identify potential advantages and limitations of the options.

The report does not aim to prescribe any specific options for governments to take. Rather, it explores the alternatives available for governments that may be considering various options and their suitability for specific disciplines.

Cities in Transition is an International Institute for Sustainable Development (IISD) research initiative that explores the intersection of urban planning, energy use, and emissions reduction. Focused on the city of Winnipeg in Canada, the project examines how land-use development patterns influence emissions outcomes. Like many North American cities, the city of Winnipeg is shaped by low-density, car-oriented urban development that requires enormous amounts of energy. Compact, walkable communities not only produce significantly lower emissions but also offer additional benefits, including increased municipal revenue and improved well-being for residents.

This project breaks new ground in energy policy by exploring how urban planning can be meaningfully integrated into climate strategies. While climate change is frequently considered within urban planning circles, urban planning itself has received little attention in climate and energy policy. This disconnect has limited the effectiveness of energy policy. Meeting ambitious emissions reduction targets will not be possible by focusing solely on transitioning fossil fuel-based energy systems to renewables—there is an urgent need to reflect on the shortcomings of current energy policy and to explore more effective, integrated approaches to achieving climate goals.

A key component of the project involved applying IISD's Sustainable Asset Valuation (SAVi) methodology to model the long-term financial and environmental impacts of different development pathways such as compact, mixed-use infill versus continued urban sprawl. The results demonstrated that sustainable urban forms can lower infrastructure and service costs while significantly reducing emissions. This evidence supports a shift away from car-dependent growth toward more walkable, connected communities.

Cities in Transition research identified three major barriers to advancing complete communities in Winnipeg:

• entrenched "Not In My Backyard" (NIMBY) opposition to infill development
• outdated municipal governance structures
• the high financial costs of car-centric sprawl

The report highlights case studies of cities that have successfully overcome these barriers, demonstrating practical pathways toward building more sustainable, inclusive, and complete communities.