Wetland restoration requires more than investment in the restoration work itself. Management, monitoring and maintenance need to be funded for years to come. Research within RESTORE4Cs suggests that it is precisely these recurring costs that often lack secure, long-term funding. A policy brief therefore examines how public finance could be complemented by appropriate forms of private investment.

The funding gap extends beyond restoration

An analysis of five RESTORE4Cs case studies across Europe reveals a recurring pattern: the upfront capital costs of coastal wetland restoration are often covered by EU programmes or national public funding. Ongoing costs, however – including maintenance, monitoring, adaptive management and environmental education – are much less securely financed.

The Rammegors nature reserve in the Netherlands illustrates the challenge. Restoring tidal exchange enabled the recovery of 145 hectares of salt marshes and mudflats, with the necessary infrastructure financed from public funds. Declining maintenance budgets, however, are now making day-to-day management more difficult.

Combining public and private finance

The policy brief identifies blended finance, which combines public and private funding, as one option for creating more durable financing structures. Yet investment in ecosystem restoration can present considerable uncertainties for private investors, including financial risk, regulatory uncertainty and difficulties in demonstrating measurable ecological returns.

Public policy therefore has an important role in creating the conditions for responsible private investment. The recommendations include guarantees and risk-sharing mechanisms, Payments for Ecosystem Services (PES), and well-regulated schemes for carbon, nutrient or biodiversity credits. Tax incentives and concessional loans could provide further options.

Crucially, the brief does not present private finance as a substitute for public funding. Instead, it argues for financing models that combine the two while maintaining robust regulatory frameworks, long-term planning and measurable ecological outcomes.

"Beyond public funds: diversifying financing for wetland restoration" was published in 2025 by Elisa Ciravegna (Wageningen Social & Economic Research) as part of the Horizon Europe project RESTORE4Cs.