Accelerating Nature-Based Investment: Connectology Publishes 12 Off-the-Shelf Instruments

Across Europe, rivers, wetlands, and peatlands are under growing pressure from climate change, pollution, and decades of overuse. Protecting these fragile ecosystems requires not only environmental expertise but also the financial means to sustain restoration over time. Too often, promising conservation projects struggle to continue simply because funding runs dry.

The MERLIN, in collaboration with Connectology, is working to change that. This large-scale initiative is restoring freshwater ecosystems across Europe while demonstrating the power of Nature-based Solutions (NbS) to drive the systemic changes our societies need to preserve the environment and safeguard our collective wellbeing. By bringing together science, policy, and finance, MERLIN aims to create replicable frameworks for sustainable restoration, ensuring that ecological recovery goes hand in hand with economic resilience and social benefit.

As part of this mission to create a more sustainable future, Connectology has led the development of a comprehensive collection of Off-the-Shelf Instruments (OTSIs), innovative financial tools designed to guide and accelerate the mobilisation of both public and private capital for large-scale restoration projects. These tools were created with one goal in mind: to help restoration managers move beyond traditional grant dependency by providing practical, flexible mechanisms that attract blended financing, reduce risk, and enable long-term impact.

Each OTSI follows a common and accessible structure, making them easy to understand and apply in diverse contexts. They include a description of the financial mechanism, a step-by-step implementation guide, operational cost estimates, and examples of successful cases drawn from real-life projects across Europe. This standardised format enables comparison between instruments and allows them to be combined strategically, creating tailored funding models suited to the unique needs of different restoration initiatives.

A total of 12 OTSIs have been created and organised into three categories, each addressing a different dimension of nature finance: Community-Based OTSIs, Market-Based OTSIs, and Institutional OTSIs. Together, they form a practical toolkit to help restoration initiatives achieve long-term financial sustainability.

Community-Based OTSIs

• Donation-Based Crowdfunding: Engages communities and individuals in funding local restoration projects while raising awareness. 
• Reward-Based Crowdfunding: Attracts small investors through non-monetary rewards tied to their investment.
• Corporate Donations: Encourages companies to contribute to environmental goals while enhancing their ESG profile.
• Sponsorship for Natural Areas: Companies gain visibility while restoration projects secure long-term funding support. 

Market-Based OTSIs

• Tourism and Agriculture Activities: Generates income by linking nature restoration with sustainable local activities.
• Carbon Sequestration Credits: Monetises the carbon absorption capacity of restored ecosystems.
• Biodiversity Offsetting: Compensates for unavoidable biodiversity loss from development projects by funding measurable conservation gains elsewhere.

Institutional OTSIs

• Grants: Provide substantial upfront resources to launch and scale projects, especially for pilots and innovation.
• Debt Instruments: Offer long-term capital for large-scale projects, repayable over time. 
• Credit Guarantees: Reduce lenders’ risk and improve access to loans for restoration actors. Effective when backed by strong governance and credible financial partners.
• Public-Private Partnerships (PPPs): Combine resources and expertise from both sectors to finance large-scale projects.
• Green Bonds: Mobilise large-scale capital dedicated to environmental outcomes.

Developed through an extensive, multi-stakeholder process involving financial experts, conservation practitioners, and restoration experts, the OTSIs include detailed guidance on setup, operational costs, successful case studies, and replication potential, offering project developers and investors the tools to turn good intentions into measurable impact.

With all OTSIs now officially published, MERLIN takes a decisive step toward bridging the gap between finance and nature, enabling sustainable investment models that can be replicated and scaled across Europe and beyond.

Explore the full set of Off-the-Shelf Instruments here:

https://project-merlin.eu/outcomes/off-the-shelf-instruments.html