The EU-funded MERLIN  project aimed to mainstream Nature-based Solutions (NbS) for ecological restoration, with a particular focus on freshwater ecosystems. Nature restoration projects often rely on grants and face significant challenges in securing long-term, diversified financing.  While public funding remains essential, long-term restoration increasingly requires projects to attract complementary sources of finance. To support this transition, MERLIN developed a portfolio of Off-the-Shelf Instruments (OTSIs) and promoted investment readiness and entrepreneurial thinking among restoration teams. Together, these resources help practitioners identify, understand and apply a broad range of financing mechanisms that can strengthen the financial sustainability and scalability of restoration projects.

These instruments acknowledge the indispensable role of private finance in propelling impactful initiatives forward.

The resource is available either online or as a pdf. Each of the instruments was developed in collaboration with experts to create a portfolio of cutting-edge approaches for funding Nature based Solutions. Although the initial focus is on freshwater restoration, the tools can also be transposed to other contexts. 

Each OTSI provides practical guidance, step-by- step methodologies, and real-life successful case studies, ensuring the financial instruments are accessible and actionable for practitioners from diverse professional backgrounds.

The Off-the-Shelf Instruments are: 

Community-Based OTSIs

• Donation-Based Crowdfunding
• Reward-Based Crowdfunding
• Corporate Donations
• Sponsorship for Natural Areas

Market-Based OTSIs

• Tourism and Agriculture Activities
• Carbon Sequestration Credits
• Biodiversity Offsetting

Institutional OTSIs

• Grants
• Debt Instruments
• Credit Guarantees
• Public-Private Partnerships (PPPs)
• Green Bonds

MERLIN’s approach provides replicable models of these financial mechanisms for nature- NGOs, and private sector actors.

To further support restoration managers, MERLIN also developed a practical briefing note entitled “What makes a restoration project investor-ready?”. This document explains how investors discover and screen projects, what “risk before impact” means in practice, and how blended finance and phased capital structuring work. It also identifies key project differentiators to attract capital.