In collaborationWORLDwith Oliver WymanNature Positive:Financing the Transition in CitiesINSIGHT REPORTJANUARY 2025■■■■■■■■■Cover:1-Pact Edition.Images:Getty ImagesContentsAbout the Nature Positive Transitions series3ForewordExecutive summary51 Global urbanization and the nature opportunity for cities61.1 Protecting and restoring nature in a rapidly urbanizing world1.2 Aligning on a definition for nature finance82 Nature finance in urban development102.1 Making space for nature in urban development finance112.2 Nature mainstreaming in cities122.3 Nature-positive finance in cities142.4 Overcoming funding gaps153 Shaping nature finance in cities:a spotlight on MDBs163.1 The relationship between MDBs,urban development and nature173.2 Carving space for cities and nature in MDB reforms173.3 State of MDB urban nature finance183.4 MDBs'progress in mainstreaming nature213.5 Streamlining assessment processes and evaluation frameworks for"nature positive"223.6 Major funding mechanisms and the opportunity to further mainstream nature233.7 Increasing nature finance in cities254 Challenges with nature finance in cities264.1 Limitations to nature finance in cities27274.3 Emerging initiatives and progress305 Addressing the limitations of nature finance325.1 Strengthening regional and local government awareness and capability335.2 Assessing opportunities to mainstream nature within existing processes and policies345.3 Adopting a structured collaboration mechanism through which MDBs can easilyengage with city governments355.4 Using MDB creditworthiness programmes,guarantees and partnerships with creditrating agencies365.5 Using non-sovereign-backed loans375.6 Using blended finance and partnerships with the private sector37Conclusion38Appendix39Contributors41Endnotes44Disclaimer2025 World Economic Forum.All rights reserved.No part of this pubication may be