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

Project lead: Prof Nicky Morrison
Lead organisation: Western Sydney University
Partners: NSW Treasury, NSW Department of Planning, Housing and Infrastructure, Business NSW, Urban Development Institute of Australia NSW, Blacktown City Council

The Challenge

NSW’s growing cities, particularly in Western Sydney, need more parks, tree canopy and green spaces to support cooling, liveability and emissions reduction. Councils struggle to deliver this infrastructure due to capped rates, short-term grants and limited developer contributions. While NSW has a Sustainability Bond framework, it has not yet been applied to urban green infrastructure.

Our Approach

This project will explore how sustainability bonds can be adapted to fund low-carbon and nature-based solutions in NSW cities. It will draw on international best practice and assess how the existing NSW Sustainability Bond framework could support parks, tree canopy and green corridors. The project will work with government, industry and councils to test place-based funding models in high-growth areas.

Expected Impact

The project aims to identify practical and scalable funding pathways for urban green infrastructure, helping councils plan and deliver green spaces more consistently and positioning NSW as a leader in sustainable funding for resilient cities. In the longer term, widespread adoption could enhance emissions reduction, equity and urban liveability across NSW.

Project Timeline: March 2026 – November 2026