Overcoming financial barriers to ecological restoration – The case of the Marker Wadden

In this paper, we closely examine the case of the Marker Wadden, a nature restoration project with recreational opportunities in the Dutch lake Markermeer. The Marker Wadden – a mud island concept – has been constructed using locally sourced building materials (sediments from the lake) and is designed to withstand natural dynamics such as storms and waves. Lack of funding and financing has been repeatedly discussed and identified as a key barrier to implementing and upscaling ecological restoration, or Nature-based Solutions (NbS) in general. This highlights the importance of studying a unique case, such as the Marker Wadden, where this well-documented barrier has been overcome. We aim to identify the financial arrangements made and how they came about. We adopt the rounds model (a policy analysis theory), apply evidence triangulation, and employ a theoretical framework that captures an institutional perspective on financial barriers. We find the Marker Wadden project to be an example of public and private co-funding for ecosystem restoration. We further find revenue generation from recreational activities leads to partial cost-recovery, and non-public funding sources are unlocked due to the involvement of an NGO. We also find the pre-investment phase to be instrumental in overcoming financial barriers during later (implementation) phases. We surface the main drivers that led to funding for the Marker Wadden project, reveal opportunities for investment planning for NbS, and expose trade-offs in terms of (democratic) equity, efficiency, and environmental outcomes resulting from the combined public, private, and philanthropic co-funding arrangements used. • This study examines the financial engineering of ecological restoration projects. • The pre-investment phase is instrumental for project funding. • This case exemplifies public and private co-funding with partial cost-recovery for maintenance. • Environmental legislation and economic restrictions serve as key drivers for public funding. • Strings-attached private funding can lead to equity, efficiency, and environmental trade-offs.