Funding diversification for scaling up freshwater restoration in Europe: factors shaping the role of restoration teams

Introduction Freshwater ecosystem restoration must be rapidly scaled up to address climate change and biodiversity loss, as reflected in the 2024 European Union (EU) Nature Restoration Regulation. Achieving national and international restoration targets is constrained by a persistent funding gap. Current efforts rely heavily on policy‐bound public funding streams, which are insufficient to reach the targets. While top‐down initiatives such as emerging nature markets aim to mobilize private investment for restoration, the role of traditional restoration actors in funding diversification is underexplored. Objectives We examine enablers for on‐the‐ground freshwater restoration teams to diversify funding sources. Methods Within a large transdisciplinary European project focused on freshwater restoration, we applied multiple qualitative methods to identify factors influencing restoration teams' ability and willingness to engage with non‐traditional public and private funding mechanisms. Results Key factors that shape funding diversification center around team attitudes toward diversification and skills and knowledge related to (1) assessment of (co)benefits, (2) developing or supporting revenue‐generating activities; and (3) development of cross‐sector partnerships. These factors shape teams' strategic choices related to funding, along with organizational mandates and institutional context. Conclusions Bottom‐up enablers that support on‐the‐ground restoration teams to diversify funding, particularly openness to explore alternative funding, clarity in mandates and sufficient capacity, and skills to do so, are needed to complement top‐down efforts to scale up freshwater restoration funding.