Funding nature positive cities: Unlocking sustainability bonds for urban green infrastructure

Project Summary

The project investigates how innovative funding mechanisms — particularly sustainability bonds — can be advanced to embed low-carbon and nature-based solutions in NSW’s vibrant cities.

Growth regions such as Western Sydney face major pressures in delivering the green infrastructure that underpins urban cooling, biodiversity, and liveability. Current reliance on capped council rates, short-term grants and limited developer contributions leaves councils unable to fund the parks, tree canopy, and open spaces needed to meet climate and equity goals. By drawing on international exemplars and aligning with NSW’s existing Sustainability Bond framework, this project will develop practical models for financing urban green infrastructure.

The focus is on place-based demonstrators in high-growth precincts, showing how funding tools can accelerate adoption, overcome institutional barriers, and support coordinated planning and delivery. The outcome will position NSW as a leader in embedding nature-based and low-carbon solutions through sustainable funding pathways.

Project Team

Nicky Morrison (Lead), UTRC
Khandakar Farid Uddin, WSU
Neha Deo, WSU