NbS Triple Win Toolkit: Economics and Finance 85 of time and after a time lag. This makes debt financing problematic in the short-term since there is no revenue to which repayments can be linked. National governments and institutions – some ODA countries do not have the fiscal capacity to support many of the NbS projects we have seen. From many countries, there are very high levels of both indebtedness and costs of borrowing. Public spending is already stretched and the amounts required to make sustainable change at a landscape level are often not available. For many, the nature and size of the hazard(s) which NbS seeks to overcome already dwarfs domestic capacity to resolve societal problem(s). Both the availability of resources to direct to non-revenue generating activities and ability to borrow on international capital markets are limited in many cases. In additional, there are often weak regulatory structures, informal property rights arrangements, contract enforcement issues and inefficient policy and legal frameworks. Such conditions are not conducive to private investment nor risk-taking finance (for examples, loans or equity). Where non-grant funding has been seen (loan or equity finance)the following is typically noted: Loan financing is typically complemented with grant financing. Where both are combined, it is typical that grant financing targets those activities which are in their early stages, for example market development. Loan financing is often directed where there are short to medium term income benefits and these are expected to manifest quickly; The loan financing is targeted at a specific revenue-generating activity or infrastructure project. Grant financing is often spread across all activities, including those which are capacity building and upskilling, and other activities which generate non-market benefits (for example, climate benefits). Whilst there has been some evidence of loan financing, these are typically concessionary in nature. There are often grace periods during which the capital investment does not have to be repaid,term rates are particularly long (in excess of 20 years), and the interest rates are lower than market rates. In general terms, the wider literature refers to NbS (and generally nature-related projects) as not being bankable or investable. Bankable projects are referred to as those which are financially viable and support the development of climate resilient and sustainable landscapes and economies127. In other words, a bankable triple-win NbS project delivers for biodiversity, climate change and poverty reduction objectives, whilst simultaneously delivering positive financial returns suitable for private investment and positive social returns for wider society. For an NbS project to be suitable for private finance, there are a variety of different characteristics it requires. The extent to which these are important will vary depending on the type of investor and the individual investor themselves. Generally, such NbS projects should have the following characteristics127. Cashflow generating activities A clearly defined probability of success A clear exit strategy for investors An acceptable risk-adjusted rate of return A clear proof of concept and track record It is the task of project managers and those designing NbS projects to develop a financial model which is sustainable both during and after project implementation. The following section discusses the enabling conditions necessary to facilitate NbS investments, and the barriers which are currently present in increasing the prevalence andrelevance of private finance in NbS projects.