In brief
- Urban expansion is seen as the key to driving economic progress and raising living standards in Africa, yet, without careful planning, it risks degenerating the ecosystem services on which economic activity and well-being ultimately depend.
- Lives and livelihoods in many African cities are already being severely impacted by infrastructure damage, community displacement and the spread of disease caused by more frequent and extreme weather events.
- Conventional approaches, which often treat nature and urban development as competing interests, overlook biodiversity's potential to address challenges, such as heatwaves, flooding and air pollution.
- Conversely, recognising the symbiotic relationship between biodiversity and well-being can open up new pathways to development, which simultaneously enhance nature and climate resilience, improve well-being, and draw in private investment through Urban Biodiversity Credits.
- To build thriving and resilient cities, policymakers, investors and communities should adopt frameworks like the Urban Biodiversity Standard (UBS) as a means to systematically integrate biodiversity into urban planning and investment strategies.
Introduction
Earlier this month, the New Cities Summit in Nairobi explored Africa's urban future and vast potential. But it overlooked a critical factor – the opportunity for African cities to leverage nature to help tackle climate change, biodiversity loss and inequality whilst promoting economic development. Mishcon de Reya LLP, Puxley ESG, the Nature & People Foundation and Evertree have come together in this article to highlight the benefits of a green urbanisation.
The future of Africa is undoubtedly urban
Over the next three decades, Africa will experience an unprecedented increase in its urban population, doubling from 700 million to 1.4 billion people by 2050 and becoming the continent with the second largest urban population after Asia (3.5 billion people).1 This presents an unparalleled opportunity to reimagine the future of urban living across Africa and beyond.
By 2035, it is estimated that the continent's top 100 cities will house 21% of the continent's population and generate over 60% of its GDP.2 A modern urban transition enables us to leverage technology, as well as the benefit of lessons learnt in relation to governance, urban planning, sustainability and equality. Implementing modern concepts when developing urban Africa provides the opportunity not only to drive development and boost economic growth, but also improve standards of living and equity across the population.
But urbanisation comes with significant challenges
Planning and management challenges, poverty and inequality, and infrastructure deficits threaten to compromise the potential economic benefits of urbanisation. These are projected to worsen in the context of the climate and nature crises.
The climate crisis is already severely affecting urban economies in Africa. Extreme weather events from droughts to floods are becoming the norm across the continent, causing infrastructure damage, community displacement and widespread disease. More than 230 people and over 40,000 households were displaced during flooding in Nairobi (Kenya) in 2024, costing the Kenyan Government around USD 80 million; in February 2025 Gaborone (Botswana) experienced widespread flooding that overwhelmed roads, drainage channels and dams; and Egypt already has the highest number of heat related deaths in MENA.
But are our cities exacerbating the problem? As natural landscapes are converted into cities, natural processes are compromised and new challenges arise, such as the absorption and retention of more heat (known as the "urban heat island effect"); reduced fluid absorption capacity increasing flooding risk; and reduced vegetation impacting populations of pollinating insects.
Nature as a solution
Clearly, urbanisation can be a double-edged sword and must be managed carefully. However, new cities have the opportunity to apply modern solutions to urban problems. There is one solution which is consistently under-utilised - nature. Urbanisation often comes at a cost to nature as human activity degrades ecosystems and drives biodiversity loss. The benefits of conserving nature are often overlooked and misunderstood as competing with the interests of urban development. However, nature can be used as a tool alongside urbanisation to facilitate the creation of healthy, happy and resilient cities.
Maintaining and establishing new sources of biodiversity in cities can help solve human problems. It can help mitigate climate change by sequestering carbon dioxide; reduce excessive heat and promote thermal comfort by providing shade; and mitigate flooding risk by reducing soil erosion. These are just some of the ecosystem services which biodiversity provides. The benefits of increased vegetation are cumulative. By mitigating environmental hazards, they also improve human health, well-being, and create socio-economic opportunities.
Integrating biodiversity and green infrastructure into urban planning offers a resilient and cost-effective strategy to address these challenges. As an example, many African countries are faced with the challenges of water scarcity. Strategic use of vegetation can increase groundwater recharge, providing a natural buffer against water scarcity during prolonged droughts.
There is a plant or tree specifically adapted to solve almost any human problem. The challenge is a question of selecting which tree to plant where, and how to fund it.
Spotlights: the value of nature in Africa
Spotlight: Cape Town, South Africa
Cape Town is one of the most biodiverse cities in the world.
In 2012 a joint study by the City of Cape Town and ICLEI estimated that the natural assets of Cape Town provide an annual flow of ecosystem services valued at approximately R4 billion.
This value is derived from various ecosystem goods and services including food and water (provisioning services), climate regulation, water purification and pollination (regulating services) and tourism and recreation (cultural services).
Tourism and recreation is consistently highlighted as one of the largest economic benefits to Cape Town, with revenues of more than R326 million annually. But nature also provides critical cost savings for the city. Ecosystems like coastal dunes, wetlands and healthy fynbos act as natural defences against hazards, saving the city an estimated R60 million annually due to avoided damages. A 2023 study on Cape Town found residents' willingness to pay (WTP) for secure and "green" water supply was R2.8 billion/year for secure supply and R3.3 billion for securing this supply using options that ensure the protection of the region's rivers and estuaries. The cost of replacing natural water purification services with engineered solutions would likely be significantly higher.
Spotlight: The Nakivubo Swamp, Uganda.
Ecosystem services provided by the Nakivubo Swamp (a natural wetland) to the Greater City of Kampala, Uganda, were estimated to have a value of USD 2 million a year in terms of water purification benefits, which would be the cost of the infrastructure required to provide a similar service. The cost of managing the wetlands to simultaneously optimise its waste treatment service was calculated at about USD 235,000 per year. This study led the Government of Uganda to reverse previous plans to drain and reclaim the wetlands, maintaining significant benefits for conservation (UNDP-UNEP Poverty-Environment Facility 2008; Russi et al. 2013).
The Urban Biodiversity standard
The Nature & People Foundation, (a UK-based non-profit organisation), has established a framework to answer this question. It promotes and aligns investment in biodiversity to tackle the social and economic needs of cities. This framework is the Urban Biodiversity Standard ("UBS"). The UBS recognises the key benefits of investing in urban biodiversity by virtue of the myriad ecosystem services it provides, including improved air quality; reduced noise pollution; reduced human stress; and promotion of local commerce and elevated property value.
The UBS works by setting out rules to measure urban biodiversity and ecosystem services, and assigning financial value to these by way of Urban Biodiversity Credits ("UBCs"). To do so, it guides stakeholders through the following steps:
- Measurement of the existing stock of biodiversity in the urban area and assessment of the ecosystem services this stock provides.
- Stakeholder engagement and assessment of social needs and opportunities.
- Development of a biodiversity strategy by selecting and identifying species of vegetation that can deliver the specific ecosystem services to better meet social and economic needs.
- Generation of UBCs based on the increase of vegetation and/or ecosystem services to help cities attract investment in urban biodiversity.
The Nature & People Foundation team has developed its own biometric model that allows for the calculation of any individual species' ability to deliver ecosystem services simply by measuring its vegetative cover. Using this technology, it has accumulated a database which records the ecosystem capacities and services delivered by the most common species of vegetation in cities. The team can then utilise its urban biodiversity management tool to identify the best combination of species to tackle any social and economic needs of a specific city.
This framework has already been put to proof in two pilot schemes in Formentera, Spain and Rio, Brazil.
Applying the UBS in Africa
Perceptions of nature and its benefits vary significantly across different cultural and socio-economic contexts. The application of the UBS to cities in Africa enables cities to move beyond general "green initiatives" to make precise, informed decisions about which native species are best suited for the specific environmental and social challenges in an urban area. Unlike more general guidelines, the UBS provides a quantifiable framework to measure increases in vegetative cover of trees, shrubs or herbaceous plants. This objective measurement is critical for some African cities where baseline biodiversity data might be scarce, allowing them to track real progress and impact.
But perhaps the most significant benefit for African cities is the opportunity to bridge the nature funding gap. UBCs are an innovative financing mechanism encouraging public private collaboration and promoting new model and structural reforms that prioritise nature-positive interventions at all levels. UBCs represent an increase in vegetation coverage and these can be digital or non-digital assets, allowing cities and developers to attract private investment for urban biodiversity projects, and helping to bridge the substantial funding gap often faced by African municipalities.
What the UBS can offer
Data-driven and science-based approach for effective planning
Rigour and specificity: The UBS is a science-based standard that supports rigorous analysis of tree and shrub species. This means African cities can move beyond general "green initiatives" to make precise decisions.
Measurable biodiversity gains: Unlike more general guidelines, the UBS provides a quantifiable framework to measure increases in vegetative cover, tree, shrub, or herbaceous plants.
Addresses specific urban challenges: This can include the urban heat island effect, air pollution, and flooding.
Unlocking innovative finance through Urban Biodiversity Credits ("UBCs")
Bridging the funding gap: This is perhaps the most significant benefit for African cities. The UBS defines UBCs as an innovative financial mechanism, representing an increase in vegetation coverage and can be digital or non-digital assets. This allows cities and developers to attract private investment for urban biodiversity projects, helping to bridge the substantial funding gap often faced by African municipalities.
Creating a market for nature: The UBS establishes rules for the development of UBCs, creating a transparent and efficient market for biodiversity credits. This means businesses and investors can dedicate resources to nature recovery in cities, with clear, measurable outcomes for their investment.
Scalable and verifiable impact: The UBS allows for the generation of UBCs annually for up to 25 years based on maintained increases in vegetation cover. This long-term, verifiable approach makes investments more attractive, as funders can see sustained environmental, social, and economic benefits. The use of advanced technologies like AI and Blockchain for real-time monitoring further enhances transparency and trust in these credits.
Enhancing resilience and climate adaptation
Targeted nature-based solutions: By focusing on the scientific selection of species, the UBS promotes nature-based solutions that are explicitly designed to enhance urban resilience. For example, specific tree species can be chosen for their superior cooling properties in heat-stressed cities or their ability to absorb large amounts of stormwater in flood-prone areas. The selected species will be carefully evaluated for their resilience to both current and future climatic conditions, ensuring long-term adaptation and viability. Moreover, the UBS prioritises native species that strengthen local biodiversity and cultural heritage.
Ecosystem services credits: The UBS also defines "ecosystem services credits" tied to the specific environmental benefits provided by vegetation (e.g., improved air quality, flood mitigation). This helps cities monetise and prioritise projects that deliver multiple benefits, strengthening their capacity to adapt to climate change impacts.
Social and economic co-benefits
Improved quality of life: The core mission of the Nature & People Foundation is to connect nature with sustainable urban development for the benefit of people. By promoting urban biodiversity, the UBS indirectly leads to essential ecosystem services like climate regulation, improved air quality, and pollution reduction, all of which create more liveable and healthier environments for African urban residents.
Health and well-being: Urban biodiversity projects, facilitated by the UBS, can directly improve public health, increase property values, and reduce the urban heat island effect, contributing to both community well-being and economic development.
Inclusive development: The UBS is designed to be an "inclusive initiative," welcoming participation from various stakeholders, including local communities. This fosters a more participatory approach to urban greening, ensuring that benefits are equitably distributed across urban populations.
Robust governance and accountability
Standardised measurement: The UBS provides a clear methodology for measuring improvements in the abundance, diversity, and resilience of trees and shrubs. This standardisation is vital for monitoring progress and demonstrating accountability to stakeholders, investors, and citizens.
Project listing and verification: The process of listing projects in the UBS registry, validation, registration, and subsequent verification provides a strong governance framework, ensuring that projects meet the required standards and genuinely contribute to urban biodiversity.
Informed policy and Regulation: By providing clear metrics and a framework for assessing urban nature, the UBS can inform the development and refinement of local urban planning policies and regulations in African cities, guiding more sustainable land use and development.
Get in touch
We invite forward-thinking investors, philanthropic organisations, corporations, and development partners to explore the potential of UBCs in African cities with us. Please feel free to reach out to jimenavillamizar@natureandpeoplefoundation.org, victoria@puxleyesg.com or charlotte.overington@mishcon.com.
Jimena Villamizar
Jimena Villamizar is an advisor for Nature and People Foundation and the Managing Director of Evertree Partners, a consulting firm and innovation centre based in Spain specialized in urban biodiversity that integrates science, artificial intelligence, remote sensing, and geospatial data. She works with a multidisciplinary team composed by biologists, lawyers, economists who are all driven by data and purpose and obsessed with positive change, developing solutions to respond to the climate crisis using the most powerful tool we have: biodiversity. She has supported the development of the Urban Biodiversity Standard of the Nature & People Foundation (N&PF), promoting the integration of scientific and technological criteria into sustainable urban decision-making. Jimena has an international background in financial markets, business development, and biodiversity solutions across Latin America, Europe, and Asia.
Victoria Puxley
Victoria is an English-qualified lawyer specialising at the intersection of corporate law, climate change and biodiversity loss. Headquartered in Nairobi, she works closely with private sector, academics and NGOs to advise on the legal implications and strategic responses relating to the climate and nature crises. Her role often goes beyond traditional environmental compliance to encompass the emerging and rapidly evolving landscape of climate and nature-related risks and opportunities, including personal liability of directors for mismanagement of climate risk and innovative financing mechanisms. Victoria is Head Tutor on the Governance for a Sustainable Future course at the University of Cambridge's Institute for Sustainability Leadership.