Nature for Water partnership

Project summary

The Nature for Water Facility is a pioneering nature-based solutions initiative established by Pegasys in partnership with The Nature Conservancy. It addresses the urgent need for resilient, sustainable watershed management by supporting local stakeholders in upstream areas to design, fund and implement nature-based solutions at scale for water security. Nature for Water bridges gaps in technical capacity and investment, helping to establish long-term, climate-resilient water systems.

The background

The water we rely on daily depends on the health of the landscapes through which it flows. Yet in 2025, nearly 70% of the global population is expected to live in water-stressed areas and nearly half of the world’s drinking water sources are already degraded. This crisis is driven by population growth, climate change, poor land use and weak planning.

Traditional infrastructure alone cannot solve this problem. Instead, we must restore the watersheds where our water originates. Nature-based solutions for water security offer a vital way forward. These approaches protect, restore and sustainably manage ecosystems to reduce water risks. Investments upstream, closer to water sources, deliver significant benefits for downstream users, yet designing and implementing nature-based solutions is complex and often hindered by limited technical skills and financing options.

The challenges

Nature-based solutions can improve the quantity, quality and timing of water supply. However, less than 0.1% of the $800 billion spent annually on the global water sector goes to upstream watershed investment. Grey infrastructure remains the default, with little integration of nature-based solutions into planning or budgets.

Many utility companies, local governments and the private sector are interested in nature-based solutions but lack the technical knowledge and capacity to get started. The ecosystem of professional services in this space is underdeveloped, with few strategic or technical advisers to support full project life cycles. As a result, local champions often struggle to move from concept to implementation.

The solutions

Pegasys and The Nature Conservancy launched the Nature for Water Facility to address this market failure. Nature for Water provides tailored technical assistance and implementation support to help organisations in upstream watersheds develop and deliver large-scale nature-based solutions programmes, also known as watershed investment programmes (WIP), that strengthen water security.

Nature for Water supports clients across the entire programme lifecycle – from diagnosis and pre-feasibility to business case development, return on investment analysis, strategic design and sustainable finance and funding planning.

Nature for Water operates through a two-track service model:

• programme preparation: provided through pro bono engagements and fee-based partnerships
• implementation support: delivered either via pro bono grants through the GO Fund or through paid delivery support, ensuring continuity from planning to execution.

These services help the client answer key questions such as what their focus should be, who their key stakeholders are, what steps they need to take to develop a long-term Watershed Investment Programmes, who can execute the work and how this all fits together.

The impact

Nature for Water works through three core focus areas:

1. project selection: Semi-annual calls for proposals provide access to Nature for Water’s expert team and resources. The goal is to support 100 programmes by 2030.
2. service model innovation: Nature for Water is developing a fee-based, integrated nature-based solutions consultancy model tailored to long-term water security outcomes.
3. knowledge and impact management: A dedicated team ensures lessons are captured and shared through a robust impact framework and continuous feedback loops.

The new “Nature for Water 2.0 Strategy” aims to expand into Asia and other regions, scaling nature-based solutions globally to build climate resilience and strengthen water security.

All outputs from Nature for Water are publicly available, contributing to the development of a gold standard for investing in nature-based water security solutions.

By delivering on its three core focus areas, Nature for Water will scale up nature-based solutions in critical areas, with the aim of improving the management of 4000 km of rivers, 8000 hectares of wetlands, 275,000 hectares of land and supporting climate adaptation benefits for over two million people by 2025.

To date, the project has delivered an estimated:

• 400,000 tonnes CO₂e/year saved, captured or avoided
• 100+ million m³/year of water saved, reduced, recycled or avoided
• 6000+ ha restored, 10,000+ ha protected, 35,000+ ha under nature-based solutions management
• 99+ km of rivers and 3600 ha of lakes and wetlands improved
• 4000+ people with improved livelihoods
• 580,000+ people with strengthened climate adaptation.