Land Degradation Neutrality TRANSFORMATIVE ACTION, tapping opportunities

Table of contents

1. Transformative action, tapping opportunities 06 2. Land: The common ground 08 3. LDN Transformative projects and programmes in practice 14 4. Financing opportunities for LDN transformative projects and programmes 28 5. UNCCD Global Mechanism support 42

3 Foreword by Monique Barbut, UNCCD Executive Secretary

Transformative projects and programmes And today, a growing array of funding We invite you to explore a selection of along with innovative finance are at the options and mechanisms are available for successful land-based initiatives from core of successful action to achieve Land financing transformative land degradation developing countries and economies in Degradation Neutrality. neutrality projects and programmes. The transition that utilize public and private investment capital is coming from multiple finance to implement projects. UNCCD, Today, the pressure on global land resources sources – national and international, through its operational arm, the Global is greater than ever. The Earth’s population development and climate, public and private Mechanism, and in cooperation with is fast approaching the 10 billion mark. We finance. The opportunity to achieve land international partners, will strive to will need more food, more energy and more degradation neutrality by creatively tapping support countries access these sources water from the land to survive. These ever- into these financial resources has never of funding. Together, we can confront increasing demands on the land multiply been more promising. the global land degradation crisis and the threat posed by land degradation to our harness opportunities that come with a common future. Indeed, land degradation is To fully realize the benefits, both project commitment to land degradation neutrality. a threat to human security. To address this promoters and financing institutions threat effectively, we will need to shift our need to think outside the box. On the one focus away from land as the main problem hand, land degradation neutrality projects towards land as a key part of the solution. and programmes need to become more transformational. On the other hand, “Life on Land” is one of the Sustainable financing partners need to reach beyond Development Goals and it encourages “financing as usual” and focus on creating countries to achieve a land degradation leverage by blending multiple sources of neutral world by 2030. Today, 110 countries funding. have already made a commitment to translate this global ambition into national This publication showcases unique targets and practical action. Through features of transformative projects and implementation of national action and programmes, illustrates ways to tap into increased investment in land, countries financing opportunities and provides an will see multiple benefits for all aspects overview of the multiple funding sources of development – from food security to available for land degradation neutrality climate resilience. projects and programmes.

4 Foreword by Zhang Jianlong, Minister of State Forestry Administration People’s Republic of China

Land degradation poses a major threat to The transformative features and financing global sustainable development. The effects approaches that are the focus of this of desertification and land degradation are brochure have played a key role in projects especially evident in the drylands. China is implemented in China. Chinese experience among those countries that suffer most confirms that to achieve land degradation from these issues. The total affected area neutrality, we need to engage both the has already reached 2.61 million square government and market forces. We need to kilometers. In the 1990s, the economic involve the public sector, private enterprises losses caused by desertification amounted and the whole society while capitalizing on to USD 6.5 billion annually and 400 million the potential of science and technology. people affected. By making full use of international and domestic resources we can realize the Over the past fifty years, the Chinese potential of the land to provide ecosystem Government has implemented a series services and guarantee food security. of key environmental programmes. We have promoted the concept of ecological I am convinced that, by sharing and civilization – that is the idea of a society in learning from successful case studies and harmony with nature. We have established by encouraging both transformation and mechanisms for a stable and continuous innovation, all countries that chose to adopt public investment pipeline and created and implement national land degradation a rehabilitation model that balances neutrality targets will benefit. environmental, social and economic benefits. The ideas behind land degradation neutrality have been widely implemented.

5 1. Transformative action, tapping opportunities

The pressures on global land resources SDG target 15.3 on achieving a land While global and national commitments to are greater than at any other time in degradation neutral World by 2030 creates address land degradation are increasing, human history. A rapid population growth, opportunities for transformative action. what is missing is LDN transformative coupled with rising levels of consumption, is Land Degradation Neutrality (LDN) aims projects and programmes. The failure placing ever-larger demands on the world’s to maintain and restore the land-based to develop large-scale transformative land-based natural capital. The result is the natural capital. It plays a vital role in tackling LDN projects equals huge missed growing competition between land uses climate change, securing biodiversity and opportunities to achieve sustainable and the pressure on the land to provide maintaining critical ecosystem services, development. Projects tackling sustainable more goods and services. while ensuring shared prosperity and development issues have long suffered wellbeing. The LDN target represents from fragmentation, compromising the During the last couple of years a new the common ground for effective global implementation of comprehensive and global “Arc of Ambition” has been shaped, efforts to counter worrying trends and effective solutions. What better than with The Sustainable Development Goals recognizes the unparalleled role of land as transformative projects and programmes (SDGs), the Paris Agreement, Global an engine of economic growth and a source which, to varying degrees, result in Restoration Commitments and the Sendai of livelihood for billions and for the most biodiversity conservation, sustainable Framework for Disaster Risk Reduction vulnerable worldwide. A growing number of land management, ecosystem restoration, as cornerstones. They are tracing a new countries are translating this global target increased resilience and poverty trajectory rich with opportunities to limit into national action by setting national LDN eradication? temperature rise, halt biodiversity loss and targets. maintain the land-based natural capital LDN transformative projects and while leaving no one behind. programmes share five common features. They: (i) Contribute to the achievement of LDN targets; (ii) Deliver multiple benefits; (iii) Scale up what works; (iv) Enhance national capacities and; (v) Leverage innovative financing, including the private sector.

6 While LDN is a recently endorsed concept, The UNCCD and its Global Mechanism several projects have successfully put stand ready to work with like-minded into practice transformational features partners and countries to turn the for land-based action. This brochure opportunities for LDN transformative showcases a selection of land-based action into reality. The UNCCD Global projects that demonstrate good practices in Mechanism is ready to assist countries as initiating transformation at scale. a (i) Connector, bridging the gap between ideas and resources; (ii) Advisor, providing There are substantial opportunities for LDN knowledge for the development of LDN financing LDN projects and programmes, transformative projects and programmes including from national budgets, and; (iii) Partner in implementation, working development banks, global funds, bilateral with partners on the implementation of agencies, non-governmental organizations LDN transformative action. (NGOs) and private sector. These sources of funding are steadily increasing as commitments for sustainable development continue to evolve. Effectively tapping into financing opportunities requires that countries develop and implement LDN transformative projects and programmes backed by policies that are anchored to the principles and targets of the SDGs.

1. Transformative action, tapping opportunities 7 2. Land: the common ground 2.1. The challenge

Global land resources are under the Ignoring land puts human security on constant pressure to produce more food, shaky ground, land degradation threatens yet the amount of healthy and productive livelihoods, triggers conflicts and land available for agriculture continues to exacerbates inequality. decrease. Poor land management practices, often fueled by short-term economic gains Securing land as the common ground instead of favoring long-term sustainability, for multiple benefits means securing a have led to the loss of productivity of more common future while leaving no one behind. than 20 per cent of the world’s arable land in the last two decades.1

Over 1.3 billion people mostly in developing Drivers of land countries are trapped on degrading agricultural land facing a rapidly increasing degradation competition for critical land functions such as food, water and energy.2 Land degradation is both a cause and a result of poverty. The World Bank estimates that 80 per cent of the worldwide poor live in rural areas and 64 per cent work in agriculture.3

Decreasing availability of healthy and productive land is further exacerbating 30% global challenges such as biodiversity loss 28% DEFORESTATION and climate change and vice versa. Land use change is responsible for about 25 per cent AGRICULTURAL of the global Greenhouse Gases emissions ACTIVITIES while growing conflicts over land-based natural capital are increasing existing 7% vulnerabilities of poor people to climate 35% OVEREXPLOITATION change. Smallholder farmers, women, indigenous communities, and the rural poor OVERGRAZING FOR FUEL are the most vulnerable because of their reliance on land-based resources.

8 What is at stake? • DECLINING PRODUCTIVITY on 20 per cent of the world’s arable land in the last two decades

• LAND DEGRADATION results in an estimated USD6.3 –10.6 trillion losses per year

• 40 PER CENT OF THE WORLD’S degraded land is in areas with high poverty rates

• 80% OF THE WORLDWIDE POOR live in rural areas and 64 per cent work in agriculture

• 1.3 BILLION PEOPLE rely directly upon degraded land for their livelihood

2.1. The challenge 9 2.2. From global commitments to action During the last couple of years the global community has set a new “Arc of Ambition” based on the recognition that there is limited time to act to limit temperature rise; halt biodiversity loss; and maintain global natural capital stocks. Sustainable Development The SDGs, adopted The good news is that efforts to halt land Goals (SDGs): by the United Nations General Assembly degradation and promote sustainable in September 2015, are a set of 17 global development are mutually reinforcing. goals, which seek to end poverty by 2030, Land represents a common ground and an promote peace and preserve the planet for accelerator for reaching each of the global future generations. The achievement of the targets that will ensure a trajectory of SDGs vitally depends on how linkages are shared prosperity and wellbeing. managed to harness synergies and minimize potential conflicts and trade-offs between goals.

The successful implementation of SDG target 15.3 – achieving LDN – can connect the dots between many SDGs. Healthy and productive land is the natural solution to a number of pressing problems, such as poverty, food and water security. LDN provides a meeting point for many development commitments, policies and projects. 110 countries have already committed to set LDN targets and actions, including sustainable land management, climate-smart agriculture and forest landscape restoration.

10 The Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC): Sendai Framework for The Paris Agreement has galvanized support and opened up several Disaster Reduction and opportunities for land-based action that increase resilience and Recovery: The past years have seen contribute to maintaining global warming under two degrees Celsius. a historic change in the global resilience Achieving this groundbreaking commitment to tackle climate change, agenda with the adoption of the Sendai expressed through countries’ Nationally Determined Contributions Framework, which embedded the global (NDCs), depends on how land is factored. Estimated mitigation community’s disaster risk management potential of land rehabilitation opportunities roughly equal two thirds efforts into the SDGs framework. Disasters of the expected emission reduction pledges of all NDCs.4 On the with the highest toll of loss of human life other hand, improved land use and land management through low- and economic costs are often in those emission agriculture, agro-forestry and ecosystem conservation places where natural buffers have been and restoration provide a real resilience booster. Sustainably degraded or destroyed,7 while sustainably managed land is more drought resistant and more resilient managed lands are more resistant and to extreme external shocks.5 Healthy soil, rich in organic more resilient to extreme external matter, can hold more water and is better equipped to shocks.8 deal with more erratic or less rainfall.6

Restoration commitments: The Bonn Challenge and its respective regional implementation platforms such as Initiative 20x20 in Latin America and the Caribbean and AFR100 for Africa aim to restore 150 million hectares of the world’s degraded and deforested lands by 2020 and 350 million hectares by 2030. They address national priorities such as water and food security, as well as rural development, while fulfilling many existing international commitments, including the UNFCCC’s NDCs, Aichi Target 15 of the Convention on Biological Diversity (CBD) and SDG target 15.3 on LDN.

2.2. From global commitments to action 11 2.3. The The LDN Response Hierarchy opportunities Land degradation can be avoided by addressing drivers of degradation Land Degradation Neutrality and through proactive measures (LDN) to prevent adverse change in land quality of non-degraded land and The target 15.3 of the SDG 15 on LDN is confer resilience, via appropriate a simple but transformational idea that 1. regulation, planning and sets the stage for countries to make AVOID management practices. stronger, clearer commitments to halt land degradation by 2030. LDN provides Land degradation can be reduced a “framework for ambition” that aims to or mitigated on agricultural and move from incremental changes to bold forest land through application of transformations at the scale and urgency sustainable management practices required. 2. (sustainable land management, REDUCE sustainable forest management). The United Nations Convention to Combat Desertification (UNCCD) defines LDN as: Where feasible, some (but rarely “a state whereby the amount and quality all) of the productive potential of land resources necessary to support and ecological services of ecosystem functions and services and degraded land can be restored enhance food security remain stable or or rehabilitated through actively increase within specified temporal and assisting the recovery of spatial scales and ecosystems”.9 MAXIMIZE CONSERVATION OF NATURAL CAPITAL NATURAL OF CONSERVATION MAXIMIZE 3. ecosystem functions. REVERSE

The Scientific Conceptual Framework for land The Scientific LDN10 developed by a group of experts degradation led by the Science-Policy Interface of the are assessed through UNCCD provides guiding principles for the three indicators of Conceptual translating the LDN concept into action. the SDG 15, target 15.3 (land The foundation of the LDN conceptual cover, land productivity and Framework for framework consists of three core elements: carbon stocks). (i) Neutrality: ensuring that future land LDN degradation (losses) are counterbalanced Aiming at achieving LDN means by planned positive actions elsewhere maintaining or enhancing the land (gains) within the same land type (same resource base - in other words, the stocks ecosystem and land potential); (ii) Hierarchy of natural capital associated with land of responses: avoiding degradation resources and the ecosystem services that is the highest priority, followed by flow from them. The definition emphasizes reducing degradation and reversing past the importance of ecosystem services in degradation; and (iii) Monitoring: trends in achieving sustainability of land use.

12 LDN multiple benefits provides short-term returns in land According to the International Finance productivity and food security, while helping Corporation (IFC) of the World Bank Group, Some of the most crucial challenges of the ensure long-term resilience and adaptive agriculture, forestry and land-use change Sustainable Development Goals depend on capacity of vulnerable communities. are among some of the most relevant access to productive and healthy land: food sectors for private sector investments, According to the 2015 study of the World security, biodiversity loss, climate change, and they are prominently included in the Bank on managing the impacts of climate poverty, social instability and migration. majority of NDCs.17 The Business and change on poverty,11 part of the global LDN action can help address these Sustainable Development Commission, efforts to address climate change should challenges through a range of sustainable established in 2016 to determine and land management activities such as: focus on favoring measures that reduce or avoid land or forest degradation and quantify a compelling business case for • Integrated water management through depletion of natural resource stocks. the private sector to engage in delivering sustainable land use; the SDGs,18 identified 14 major business • Comprehensive energy planning and opportunities in the implementation phasing out of fossil fuels through wise The economic case of LDN of SDGs related to food. The required use of biofuels; Increasing efficiency, The world is suffering an estimated investment of approximately USD320 billion closing yield gaps and reducing offsite USD6.3-10.6 trillion losses per year per year has the potential to generate 19 impacts; through lost ecosystem services due to land USD2.3 trillion annually by 2030. • Improving security of land tenure, degradation.12 On the other hand, the social addressing gender disparities and returns of taking action at a global level are reducing inequalities; estimated at 5 US dollars for every US dollar • Protecting large natural ecosystems for invested in the restoration of degraded biodiversity and ecosystem services. land.13 LDN is contributing to a On a global scale, the Economics of Land Degradation Initiative14 estimates that paradigm shift towards adopting sustainable land management low carbon and resilient practices just to increase crop production development could generate up to USD1.4 trillion in economic benefits.15 A study from The land use sector is responsible for the International Food Policy Research almost 25 per cent of total Greenhouse Institute16 conducted in 2016 on the Gas emissions. Adopting and scaling up economics of land, concluded that global sustainable management practices in the benefits from investments in sustainable land use sector not only holds significant land management practices could increase carbon mitigation potential, but often at least twofold over a 30-year period.

2.3. The opportunities 13 3. LDN Transformative projects and programmes in practice 2. Deliver multiple benefits, 3.1. Features including climate benefits by: of LDN • Contributing to the Sustainable Development Goals: They seek the “sweet spots” or most cost-efficient transformative options with the largest potential to contribute to the achievement of multiple projects and SDGs; • Creating synergies between the three Rio Conventions: They aim to catalyze programmes synergies between the objectives of the three Rio Conventions, including Transformative LDN projects and promoting a joint programmatic approach; programmes employ the concept of • Contributing to low-emission and transformational change. They have the climate-resilient development: They potential to fundamentally change the lives demonstrate concrete contributions to of poor people, are ambitious in scope, the country’s climate action commitments involve multiple instruments, develop over 1. Contribute to the reflected in instruments such as the longer periods of time and have a lasting NDC and National Adaptation Plans. effect. achievement of LDN by: Particularly, an LDN transformative • Translating the LDN conceptual project should support concrete Transformative LDN projects framework into practice: They aim at adaptation actions to assist the country in and programmes in particular: translating the principles of the LDN addressing the adverse effects of climate scientific conceptual framework into change and building resilience; practice; • Creating social impact: They take a • Contributing to the LDN target: They strategic gender-responsive approach aim at contributing to the achievement and address the needs of the most of the LDN target and related national vulnerable groups, such as small farmers, commitments, such as Nationally rural communities, indigenous peoples, Determined Contributions (NDCs) and including women and young people, while restoration targets; securing local communities’ and women’s • Considering LDN data: They take into land tenure, as well as other land-related consideration LDN data for evidence- rights. They also contribute to creating based decision making and monitoring. jobs and additional sources of income.

14 5. Leverage finance, including private sector by:

• Mobilizing domestic public resources: They mobilize and promote effective use of domestic resources, including existing financing vehicles and approaches, such as national forest and climate funds, 4. Enhance national capacities ecological fiscal reforms and payments by: for ecosystem services; • Catalyzing private sector investment: • Strengthening national institutions: They unlock private sector investments They strengthen national institutions, to maximize the impact of public sources. support country leadership and ensure There is a clear need to bring in private 3. Scale up what works by: national accountability for project sector, considering that many of the implementation and outcomes. When drivers of land degradation are linked to • Moving from pilots to scale: They international climate financing sources private sector activities – for instance, need to be ambitious in both scale and are targeted, national implementing unsustainable timber harvest and impact. They scale up action beyond pilot entities (Adaptation Fund) and national agriculture; action to mainstream sustainable land accredited entities (Green Climate Fund) • Tapping into climate finance: They tap management practices; should become the preferred project into climate financing sources – for • Building on good practices: They are coordinator; example, the Green Climate Fund and focused on scaling up science-based and • Being participatory: They are the Adaptation Fund, – given the close proven good practices; participatory and community-based connection between LDN and climate • Promoting innovation: They capitalize ensuring the active role and continued action; on the latest technologies to support contributions from farmers, communities • Applying blended finance: They seek sustainable land management, and other rural stakeholders in the opportunities for co-financing and rehabilitation and restoration and actively decision-making process that defines the leveraging public, private, national and promote the transfer of technology. project’s scope, location and timing. international financing sources.

3.1. Features of LDN transformative projects and programmes 15 16 3.2. Good practice examples

While LDN has recently emerged as a The projects illustrate a variety of financing global commitment, many successfully arrangements through multiple sources completed or ongoing projects share including national funding, loans and grants features of transformative LDN projects from development banks, climate finance, and programmes. The following section bilateral financing, NGOs, the private sector showcases a selection of projects that and innovative finance schemes such as illustrate the practical application of LDN payments for ecosystem services. transformative action. The most relevant transformative features for each project are highlighted and further information and relevant documentation are included in the project description.

3.2. Good practice examples 17 ETHIOPIA Sustainable Land Management Bringing sustainable land and water management to scale

Implementing entities Supported activities include: • Ministry of Agriculture • Integration of watershed and landscape management – adoption and scaling up Financing USD of appropriate sustainable land and water • 108 million management techniques and practices by smallholder farmers and communities in Financing partners the selected watersheds; • Government of Ethiopia • Institutional strengthening, capacity • World Bank Group (IDA) development and knowledge generation; • Government of Norway • Rural land administration, certification • GEF and land use planning. Duration: Transformative features Further information • 2013 – 2019 • Scale up what works: Scaling up • Project information: projects.worldbank. org/P133133?lang=en sustainable land and watershed Beneficiaries • Implementing entities: www.moa.gov.et/ management practices, while • 1,850,000 brokering capacity development home • Financing partners: www.thegef.org; and strengthening land use Areas of intervention www.ida.worldbank.org planning; Implementing sustainable land • Enhance national capacities: management practices on 610,000 ha of Reinforcing local capacity, land located in 35 watersheds and woredas strengthening rural (districts) administration and facilitating Objectives and components knowledge transfer of good practices; The project has the objective to reduce land degradation and improve land productivity • Deliver multiple benefits, in selected watersheds of Ethiopia. including climate benefits: This objective of land conservation is Incorporating land-based achieved through the provision of capital actions into climate change investments, technical assistance and adaptation planning and capacity building for smallholders, as well facilitating active participation as support to Government institutions at of women. national and sub-national levels.

18 MADAGASCAR Sustainable Landscapes Mobilizing innovative climate finance and private sector investments to protect forests, sustain livelihoods and combat deforestation on a large scale

Implementing entities Supported activities include: • Bureau National de Coordination des • Strengthened adaptive capacity and Changement Climatiques reduced exposure to climate risks; • Conservation International • Strengthened awareness of climate • Althelia Climate Fund threats and risk reduction processes; • Strengthened institutional and regulatory Financing USD systems for climate responsive planning; • 69.8 million • Increased number of low emission power suppliers; Financing partners • Improved management of land and forest • Green Climate Fund contributing to emissions reduction – • European Investment Bank public reforestation activities in forest • Conservation International corridors. • Althelia Climate Fund Further information Duration • Project Information: www.greenclimate. Transformative features • 2017 – 2026 fund/-/sustainable-landscapes-in- eastern-madagascar • Scale up what works: Scaling up Beneficiaries • Implementing entities: www. initiatives for sustainable forest • 562,000 conservation.org; www.ecologie.gov.mg, and ecosystem rehabilitation in www.althelia.com forest corridors; Areas of intervention • Financing partners: www.greenclimate. • Leverage finance including Ambositra Vondrozo and Ankeniheny fund/home; www.eib.org; www. Zahamena forest corridors private sector: Mobilizing climate conservation.org finance and private sector Objectives and components investments through green bonds The project supports a landscape approach and the GCF private sector facility; to climate change mitigation and adaptation • Deliver multiple benefits, that blends good practices in sustainable including climate benefits: agriculture, reduction of emissions from Actively mobilizing the deforestation and land degradation (REDD+) participation of women with a and integrates public and private sector dedicated gender action plan, interventions in protected areas and forest aligning project objectives with corridors. national climate change planning.

3.2. Good practice examples 19 LEBANON Enhancing Adaptive Capacity of the Rural Communities Mobilizing communities for land rehabilitation and finding local solutions for climate change adaptation

Implementing entities Supported activities include: • Ministry of Agriculture • Increasing water availability and efficient • Lebanon Agricultural Research Institute use through water harvesting and • Green Plan irrigation; • International Fund For Agricultural • Improving adaptation of crops to climate Development change for increased production; • Boosting resilience of shepherds and Financing USD livestock to climate change through • 7.8 million sustainable rangeland management; • Implementing climate index insurance Financing partners initiative, adapting policies and sharing • Government of Lebanon lessons learned through a knowledge • Adaptation Fund management system. • International Fund For Agricultural Development Further information Transformative features • Project Information: www. Duration adaptation-fund.org/project/climate- • Enhance national capacities: • 2013 - 2017 smart-agriculture-enhancing- Establishing a community of adaptive-capacity-of-the-rural- Beneficiaries practice in sustainable land communities-in-lebanon-agrical management along with • Poor smallholders and vulnerable • Implementing entities: www.agriculture. innovative, community-based households gov.lb/English/aboutus/Minister/Pages/ activities to preserve and default.aspx Areas of intervention rehabilitate degraded land • Financing partners: www.adaptation- through knowledge sharing and Vulnerable rural communities in three hilly fund.org; www.ifad.org farmer education; regions in Lebanon: Akkar Danniyehh, North Baalbeek and Hermel, South Litani • Deliver multiple benefits, including climate benefits: Objectives and components Aligning the project objectives This project is of particular relevance for with climate change adaptation its comprehensive and thorough design. planning and facilitating active The objective of the project is to support participation of women in the the implementation of climate change project. adaptation measures in the agriculture sector in highly vulnerable areas of Lebanon.

20 HONDURAS Agroforestry Landscapes and Sustainable Forest Management Engaging coffee and cacao growers to develop sustainable agricultural landscapes

Implementing entities Supported activities include: • Government of Honduras • Strengthening local and national • UNDP governance for the dry-humid biological corridor with emphasis on protected Financing USD areas; • 61.7 million • Generating environmental, social, and economic benefits to communities Financing partners through susutainable land management • Government of Honduras and land rehabilitation to mutually • GEF benefit protected areas and production • Private Sector landscapes; Transformative features • Honduran Coffee Institute • Establishing supply chains initiatives to • Enhance national capacities: • Honduran Bank for Production and increase farmers’ income from coffee and Establishing a community of Housing cacao sustainable agroforestry as well as practice for sustainable land • Central American Bank for Economic other ecosystem services. management and fostering Integration innovative, community-based Further information Duration activities to preserve and • Project Information: www.thegef.org/ rehabilitate dry sub-humid lands • 2016 – 2022 project/agroforestry-landscapes-and- in Honduras; sustainable-forest-management- Beneficiaries generate-environmental-and • Leverage finance, including • Indigenous communities and small • Implementing entities: www.ihcafe.hn; private sector: Leveraging farmers www.banhprovi.org; www.bcie.org/en; substantial financing from the www.undp.org private sector, regional banks Areas of intervention • Financing partners: www.thegef.org; and domestic resources while Production areas farmed by vulnerable www.undp.org fostering sustainable production smallholders in the dry-humid biological supply chains for coffee and corridor of southwestern Honduras cacao production; Objectives and components • Deliver multiple benefits, The objective of the project is to strengthen including climate benefits: the connectivity between protected areas Promoting active participation and production landscapes to generate of women and ensuring shared environmental, social, and economic benefits for smallholders. benefits.

3.2. Good practice examples 21 SENEGAL Increasing Resilience of Ecosystems and Communities through Restoration of the Productive Bases of Salinized Lands Supporting the work of communities to reverse salinization in coastal landscapes

Implementing entities Supported activities include: • Institut National de Pédologie • Strengthening the institutional framework • Réseau Africain pour le Développement through mainstreaming climate change Intégré into the national development plan, • Centre de Suivi Ecologique development of coordination mechanisms • IUCN and establishing a sound knowledge base; • Implementing community activities to Financing USD control salinization and regenerate the • 8.2 million vegetation cover; • Developing activities to strengthen the Financing partners resilience of communities including • Government of Senegal knowledge sharing, capacity building • Green Climate Fund and operational support to promote • IUCN income-generating activities and secure Transformative features livelihoods. Duration • Scale up what works: Fostering • 2016 - 2020 Further information innovative, community-based • Project Information: www.greenclimate. activities to rehabilitate Beneficiaries fund/-/resilience-increase-of- salinized land and bring back • 129,804 land productivity and ecosystem ecosystems-and-communities-through- restoration-of-the-productive-bases-of- services; Areas of intervention salinized-lands • Enhance national capacities: District councils and local communities in • Implementing entities: www.inp-senegal. Reinforcing local initiatives to the districts of Fatick and Foundiougn com; www.radi-afrique.org; www.iucn. address soil salinization and Objectives and components org; www.cse.sn combat land degradation; • Financing partners: www.greenclimate. The objective of the project is to overcome fund; www.iucn.org • Deliver multiple benefits, negative effects of land degradation and including climate benefits: salinization by rehabilitating degraded Aligning project with climate land and increasing resilience of farming change adaptation planning communities through capacity building, and financing, facilitating active policy support, information management participation of women through and community actions to promote a targeted gender action plan. revegetation and protection of land.

22 COSTA RICA Payment for Ecosystem Services through National Forestry Fund Pioneering payments for ecosystem services

Implementing entities Supported activities include: • FONAFIFO20 (The National Forestry • Carbon sequestration: Capture and long-

Financing Fund) term storage of CO2; • Government of Costa Rica • Hydrological services: Protection of • Private land owners and land users watersheds or ‘recharge’ areas; • Biodiversity conservation: Protection of Financing USD a wide variety of coexisting plant and • 280 million (total since 1997) animal species; • Preservation of scenic beauty. Financing partners • Government of Costa Rica (fuel tax: 3,5 Further information Transformative features per cent, water tax: 25 per cent of the • Project Information: www.fonafifo.go.cr • Leverage finance, including total collected) • Implementing entities: www.fonafifo.go.cr private sector: Pioneering • GEF • Financing partners: www.thegef.org; and scaling up an innovative • World Bank www.worldbank.org; www.kfw.de financing mechanism through • KfW successful implementation • Private Sector of payments for ecosystem Duration services schemes; • Since 1997 • Deliver multiple benefits, including climate benefits: Beneficiaries Aligning the project objectives • Land owners and land users with climate change adaptation and mitigation measures along Areas of intervention with biodiversity conservation Degraded lands and forests, approximately initiatives and financing. Actively 800,000 ha since the project’s inception engaging women-headed Objectives and components households and female land owners and providing support to The objective of the programme is to indigenous communities; protect and preserve forests, forested land and vulnerable areas, as well as rehabilitate • Enhance national capacities: degraded land at scale through payments Promoting effective use of for ecosystem services and by mobilizing domestic resources. communities, land users and land owners.

3.2. Good practice examples 23 CHINA Loess Plateau Watershed Rehabilitation Sustaining slopes, combatting erosion and fostering sustainable agriculture in China’s Loess Plateau

Implementing entities Supported activities included: • Ministry of Water Resources • Establishing sustainable crop production on high-yielding level farmland to convert Financing USD areas devoted to crops on sloping lands to • 252.1 million other uses; • Planting sloping lands with a variety Financing partners of trees, shrubs and grasses for land • Government of People’s Republic of China stabilization and production of fuel-wood, • World Bank timber and fodder; • Substantially reducing sediment runoff Duration from slope lands and gullies; • 1994 - 2002 • Supporting physical interventions through institutional strengthening activities. Beneficiaries • Over 1 million farmers Further information • Project Information: projects.worldbank. Areas of intervention org/P003540/loess-plateau-watershed- 2 15,600 km of land in the Loess Plateau in rehabilitation-project?lang=en tributary watersheds of the Yellow River • Implementing entities: www.china.org.cn/ Transformative features Objectives and components english/government/130472.htm • Financing partners: www.worldbank.org • Scale up what works: The primary objective of the project was Bringing land protection and to increase agricultural production and rehabilitation to scale and incomes on 15,600 km2 of land in nine promoting innovative public tributary watersheds of the Yellow River. works schemes for sustainable The project supported the reduction of land use; sediment inflows into the Yellow River by establishing project sites in the watershed • Enhance national capacities: areas that had suffered from severe soil Supporting institutional erosion. development and capacity building as well as technology transfer in parallel with physical interventions.

24 GHANA Public-Private Partnership for Restoration of Degraded Forest Reserves Mobilizing private sector investments for afforestation of degraded forest landscapes

Implementing entities Supported activities include: • Ghana Forestry Commission • Scaling up forest rehabilitation in • Form Ghana Ltd. Ghana by an additional 6,700 ha, by establishing a sustainable commercial Financing USD forest plantation composed of 10 per cent • 24 million indigenous tree species and 90 per cent teak; Financing partners • Establishing the plantation on degraded • Government of Ghana land that has been acquired through a 50- • African Development Bank year renewable land lease accompanied • Climate Investment Funds (CIF) – Forest by tripartite commercial benefit sharing Investment Programme agreements between Government of Ghana, local communities and the Transformative features Duration project promoters. The plantation has • Scale up what works: Doubling • 2016 - 2020 received the certification from the Forest the size of plantation and Stewardship Council and Verified Carbon Beneficiaries allocating funding from the Standard. • Land owners and land users Forestry Commission for land Further information and forest rehabilitation; Areas of intervention • Project information: www. • Leverage finance, including 6,700 ha of degraded forest reserves in climateinvestmentfunds.org/projects/ private sector: Brokering Akumadan and Berekum public-private-partnership-restoration- an innovative public-private partnership agreement in the Objectives and components degraded-forest-reserve-through-vcs- and-fsc forestry sector supporting The objective of the project is to rehabilitate • Implementing entities: www.formghana. sustainable forestry without degraded forests at scale through an com; www.mlnr.gov.gh/index.php/ subsidies; innovative public-private partnership. agencies/forestry-commission The project mobilizes concessional • Deliver multiple benefits, • Financing partners: www.afdb.org; www. loans, climate finance and private sector including climate benefits: climateinvestmentfunds.org/fund/forest- investments to reduce emissions from Mobilizing climate finance investment-programme deforestation and forest degradation, (Climate Investment Funds – promote sustainable forest management Forest Investment Programme) and enhance forest carbon stocks. and aligning the project with mitigation and adaptation goals.

3.2. Good practice examples 25 TURKEY Afforestation and Erosion Control Creating jobs, combatting erosion and protecting vulnerable landscapes

Implementing entities Supported activities included: • Ministry of Forestry and Water Works • Supporting erosion control, afforestation and soil rehabilitation; Financing USD • Improving the quality of forest • 150 million management, including forest fire management; Financing partners • Delivering multiple environmental • Government of Turkey benefits; • European Investment Bank • Contributing to both EU and Turkish environmental policy objectives in the Duration fields of biodiversity conservation, soil • 2013 - 2016 management and long-term climate change adaptation and mitigation; Areas of intervention • Increasing rural employment Rehabilitation of degraded forests and opportunities. rangeland, erosion control measures across the country focusing on the most erosion- Further information prone areas of Anatolia • Project information: www.eib.org/eib.org/ projects/pipeline/2010/20100721.htm Transformative features Objectives and components • Implementing entities: www.cem.gov.tr/ • Scale up what works: The objective of the project is to support erozyon/MainPage.aspx?sflang=en Implementing large-scale forest rehabilitation, afforestation, erosion • Financing partners: www.eib.org erosion control measures and control and forest fire-fighting activities afforestation to advance the across Turkey. The project builds on ongoing ambitious goal of increasing activities to support Turkey in its ambitious Turkey’s forest cover to 30 per goal to increase the country’s forest cover cent; to 30 per cent of the total land area and • Enhance national capacities: rehabilitate degraded lands. The project finances erosion control measures on Strengthening forest and 155,600 ha, the rehabilitation of 110,000 rangeland management ha of degraded forest land and the including the improved afforestation of 80,000 ha. management of forest and bush fires.

26 INDONESIA Reforestation and Sustainable Rubber Planting A new approach to private sector finance for land rehabilitation and sustainable use of rubber plantations

Implementing entities challenging parts of the world. The • Michelin Group company’s vision is to set up a benchmark • Barito Pacific Group of sustainability in a natural rubber • WWF plantation for the industry to follow. The project will adopt an integrated landscape Financing USD approach by combining rubber plantations • 369 million to finance with conservation and livelihood activities. The project has been designed in close Financing partners partnership with WWF that manages • Michelin Group conservation concessions in the area. • Barito Pacific Group Main project’s objectives are the following: • Current discussions with several • Transform an unproductive, heavily development partners and private impact encroached area with illegal logging, investors such as the LDN Fund slash-and-burn practices, into a productive area through reforestation and Duration rubber planting; • 25 years, starting date yet to be defined • Protect the ecosystem of the adjacent Bukit Tigapuluh National Park from Transformative features Beneficiaries deforestation and protect endangered Approximately16,000 direct jobs will species; • Leverage finance, including be created, primarily for locals with a • Use best in class for the agronomic private sector: The project significant portion coming from ex- technologies, sapling, milling and plans to catalyze private encroachers and illegal loggers. responsible supply chain to increase yield sector investment by targeting and serve as a reference in Indonesia. triple bottom line returns Areas of intervention (environmental, social and 88,000 ha Further information financial); Only 50 per cent of the project area will be • Project Information: www.michelin.com/ • Scale up what works: The used for rubber plantation, the remaining eng/media-room/press-and-news/press- project intends to be used as areas being dedicated to soil conservation releases/Finance/Joint-venture-to-produce- a sustainability benchmark by and livelihood activities. natural-eco-friendly-rubber promoting a natural rubber • Implementing entities: www.worldwildlife. Objectives and components sustainable plantation in org; www.michelin.com; www.barito.co.id one of the most difficult and The project intends to create the first • Financing partners: www.michelin.com; greenfield sustainable natural rubber www.barito.co.id devastated areas of the world. plantation in one of the most environmental

3.2. Good practice examples 27 4. Financing opportunities for LDN transformative projects and programmes

The following section provides a summary of the most relevant financing opportunities for the implementation of LDN transformative projects and programmes. It includes a short description of international financing institutions as well as national and private sector financing opportunities.

Global Adaptation Environment Fund Facility (GEF)

Green Climate Climate Fund (GCF) Investment Funds (CIF)

28 International Development Multilateral Association Development (IDA) Banks (MDBs)

International Development LDN Finance Club Fund Private Impact Investors

National Bilateral Budgets and Financing Development Mechanisms Cooperation

4. Financing opportunities for LDN transformative projects and programmes 29 GEF provides support to government What is on offer? GLOBAL agencies, civil society organizations • The GEF serves as a financial mechanism (CSOs), private sector companies, research to the five international environmental ENVIRONMENT institutions and other potential partners in conventions listed above. It finances implementing projects and programmes in projects and programmes that address FACILITY recipient countries. land degradation and deforestation, protect and sustainably manage (GEF) The GEF was established on the eve of the biodiversity, address climate change, and 1992 Rio Earth Summit to help tackle the eliminate or reduce harmful chemicals most pressing environmental problems. and waste; Since then, the GEF has provided over • The GEF main focus is grant funding GEF resources are available USD14 billion in grants and mobilized through four modalities: full-sized more than USD70 billion in additional to developing countries and projects (over USD2 million); medium- financing for more than 4,000 projects and economies in transition to sized projects (up to USD2 million); programmes. The current GEF-6 period enabling activities (under USD1 million) meet the objectives of the (2014 – 2018) has a total envelope of and programmatic approaches. Non-grant international environmental USD4.43 billion. instruments are also available for specific conventions and agreements – initiatives; the United Nations Convention In order to support countries’ national • In addition, the GEF Small Grants on Biological Diversity (CBD), the commitments under the Conventions, Programme, implemented by the UNDP, including voluntary LDN targets, the GEF provides financial and technical support United Nations Convention to is working with its 39 donor countries to Combat Desertification (UNCCD), to communities and CSOs in meeting the ensure a robust replenishment for its next overall objective of “global environmental the United Nations Framework four-year operational phase, GEF-7 (2018 benefits secured through community- Convention on Climate Change – 2022). based initiatives and actions.” It provides (UNFCCC), the Minamata “small grants” up to a maximum of Convention on Mercury, and USD50,000 and funds “strategic projects” the Stockholm Convention on up to a maximum of USD150,000. Persistent Organic Pollutants (POPs).

Further information • Home page: https://www.thegef.org/ • GEF eligible countries: https://www. thegef.org/about/funding • GEF National Focal Points Directory: https://www.thegef.org/focal_points_ list • GEF Agencies: https://www.thegef.org/ partners/gef-agencies

30 What are the opportunities for LDN The GEF has responded to the invitation transformative Projects and Programmes? from the UNCCD COP12 to provide technical The GEF supports the implementation and financial support for initiatives that of UNCCD mainly through its Land promote LDN and address SDGs. In the past Degradation focal area. Other funding two years, the GEF Council has approved windows related to sustainable land 16 projects, investing approximately management complement the investments USD60 million into projects that directly in land degradation. The land-based funding address LDN in 13 countries and support opportunities are outlined in the GEF LDN enabling activities globally. GEF is programming directions, which are updated also contributing to the LDN Target Setting every four years. They currently include the Programme. following: How to access? • Diversified agro-ecological food production systems, integrated • Projects can be developed and submitted landscape management, landscape and through 18 GEF Agencies including UNEP, forest restoration, creation of enabling UNDP, World Bank, Regional Development environment that supports diversified Banks, WWF, IUCN and Conservation agro-ecological food production systems International. Funding proposals are and integrated landscape management; largely “mainstreamed” in the project • Conservation and enhancement of preparation cycle of these organizations; carbon stocks in land, forest, and marine • Funding proposals are coordinated and environments, as well as support to need to be officially endorsed by the GEF climate-smart agriculture; National Focal Points; • Mainstreaming biodiversity across sectors • Funding proposals need to demonstrate and within production landscapes, notably expected global environmental benefits. reducing direct pressures from agriculture and forestry by using sustainable approaches, restoring and safeguarding essential ecosystem services, enhancing ecosystem resilience and increasing carbon stocks; • Sustainable Forest Management strategy including Reduced emissions from Deforestation and Degradation (REDD+), forest and landscape restoration and payments for ecosystem services.

4. Financing opportunities for LDN transformative projects and programmes 31 What is on offer? • Sustainable Climate-smart agriculture: • Low-emission (mitigation) and climate Adaptation measures in agriculture, GREEN CLIMATE resilient (adaptation) projects and including adjusting agriculture practices programmes developed by the public to increase the resilience of food systems FUND (GCF) and private sectors: Risk-based approach and strengthen food security, while depending on funding size for micro (up improving livelihoods, safeguarding to USD10 million), small (USD10 – 50 access to food and water, strengthening million), medium (USD50 – 250 million) ecosystem resilience, protecting soil The GCF was established by 194 and large (over USD250 million) size organic matter and limiting emissions UNFCCC country parties in 2010 projects and programmes. GCF provides from livestock; to respond to the challenge of grants with and without repayment • Food security: Adoption of more resilient contingency as well as loans and equity; crops and innovative farming techniques, climate change. In 2015, the reducing food waste and improving GCF was given an important • Readiness and Preparatory Support Programme makes available up to USD1 efficiency of food supply chains; role in implementing the Paris million per country for strengthening • Ecosystems services and livelihoods: Agreement and supporting capacity to identify, prepare and Strengthening ecosystems’ capacity the goal of keeping global implement funding proposals and realize for adaptation by protecting and temperature rise well below 2 direct access; rehabilitating wetlands, mangroves and degrees Celsius. Donors have • Support helping in establishing or urban green zones that provide resources for buffering coastal erosion and storms; currently pledged USD10.3 billion strengthen a National Designated Authority or focal point to deliver on the • Watershed management: Redesigning to the Green Climate Fund.21 Fund’s requirements: Up to USD300,000 water, flood and drainage management per year; systems, as well as promoting early • National Adaptation Plans: GCF can warning systems; provide technical assistance and • Private sector opportunities: Land- grants up to USD3 million for National related projects and programmes financed Adaptation Plans; by the Private Sector Facility can include: • Dedicated private sector facility: GCF • Diversification of crop and seed uses flexible financial instruments varieties; such as debt, equity and guarantees. • Forest farming and combating It can combine these instruments with deforestation; concessional funding to promote private • Irrigation extension and increased sector investments. efficiency; • Rainwater harvesting; and What are the opportunities for LDN • Other diversification of water sources. Transformative Projects and Programmes? Further information How to access? • Avoiding deforestation: National • Home page: http://www.greenclimate. efforts to reduce deforestation, provide • Directly through accredited subnational, fund/home alternative incomes to forest users national or regional implementing • GCF eligible countries and National and support forest rehabilitation by Accredited Entities; Designated Authorities (NDA) Directory: redirecting land use expansion away from • Through International Accredited Entities, https://www.greenclimate.fund/how- forested areas; including UN agencies, development we-work/tools/country-directory banks and NGOs; • GCF Accredited Entities: https://www. • Funding proposals are coordinated by the greenclimate.fund/how-we-work/tools/ NDA and require approval from the NDA entity-directory before submission to the GCF.

32 What is on offer? What are the opportunities for LDN The USD8.3 billion Climate Investment Transformative Projects and Programmes? CLIMATE Funds (CIF) is providing 72 developing The Pilot Program for Climate Resilience and middle income countries with (PPCR) and the Forest Investment Program INVESTMENT FUNDS urgently needed resources to manage the (FIP) are of particular importance for LDN challenges of climate change and reduce transformative projects and programmes. (CIF) their Greenhouse Gas emissions. Total CIF pledges are expected to attract an • FIP focuses on REDD+ and sustainable additional USD58 billion of co-financing forest management including (i) landscape for a portfolio of over 300 projects and approaches, (ii) institutional reforms and Since 2008, the CIF has been programmes and counting. policy dialogue, (iii) sustainable forest management, and (iv) forest monitoring. leading efforts to empower The CIF is comprised of four programmes: FIP also provides support to the national transformations in the energy, • The USD5.6 billion Clean Technology Fund REDD+ process including policy dialogue climate resilience, transport and (CTF) provides middle-income countries and capacity building. FIP has a Dedicated forestry sectors. CIF concessional with highly concessional resources to Grant Mechanism for Indigenous Peoples financing offers flexibility to scale up low carbon technologies in and Local Communities designed with and test new business models and renewable energy, energy efficiency, and managed by indigenous peoples. approaches, build track records sustainable transport. • PPCR supports a number of land-based • The USD1.2 billion Pilot Program for interventions targeted to strengthen in unproven markets, and boost Climate Resilience (PPCR) is supporting climate resilience, including (i) landscape investor confidence to unlock developing countries to integrate climate approaches, (ii) integrated water additional finance from other resilience into development planning. resources management, (iii) climate sources, particularly the private • The USD780 million Scaling Up information systems and disaster sector and the multilateral Renewable Energy in Low Income management, (iv) infrastructure, (v) development banks that Countries Program (SREP) is supporting capacity building and policy dialogue, to deploy renewable energy solutions for and (vi) coastal zone management. In implement CIF funding. increased energy access and economic partnership with the implementing growth in the world’s poorest countries. development banks trainings are • The USD775 million Forest Investment organized to strengthen the capacity to Program (FIP) supports efforts of monitor and report results and knowledge developing countries in implementing exchange on results monitoring, south- REDD+ related action. south exchange and promotion of good practices for climate change adaptation. PPCR has set dedicated resources aside to involve the private sector for innovative funding proposals. Further information • Home page: https://www. How to access? climateinvestmentfunds.org/ CIF is implemented through five multilateral • PPCR countries: https://www. development banks: World Bank, African climateinvestmentfunds.org/fund/pilot- Development Bank, Asian Development program-climate-resilience Bank, European Bank for Reconstruction • FIP countries: https://www. and Development and the Inter-American climateinvestmentfunds.org/fund/ Development Bank. forest-investment-program

4. Financing opportunities for LDN transformative projects and programmes 33 What is on offer? • Ecosystem services: Implementation of • The Adaptation Fund has piloted direct projects that contribute to food security, ADAPTATION and regional access and provides grants climate adaptation, and sustainable land FUND of up to USD10 million for concrete management mainly through community- adaptation projects in nine thematic based interventions. Projects can also be focus areas. The projects need to result structured as small grant programmes in in outputs that are visible and tangible, a community-based manner; which always entails a concrete on-the- • Coastal Zone Management: Coastal zone The Adaptation Fund has ground investment: i.e. pure capacity protection, including the management committed USD438 million to building or research projects are not and rehabilitation of salinized areas support 66 developing countries eligible; as well as prevention of sea water with concrete adaptation • Technical Assistance for policy intrusion and protection of coastal zones projects and also through development and capacity building from storm surges through mangrove reforestation or revegetation; technical assistance and project on issues related to climate change adaptation; • Water resources management: formulation grants as well as • Project Formulation Grants (up to Adaptation of water, flood and drainage south-south support to adapt USD 30,000) and Project Formulation management systems to climate to climate change. Initiatives are Assistance Grants (up to USD20,000) change, support in water harvesting, based on country needs, views available to accredited national water conservation, erosion control and and priorities. implementing entities (NIEs) of the watershed management. Adaption Fund to build the capacity of How to access? NIEs in project preparation and design. • Through national, multilateral and What are the opportunities for LDN regional implementing entities including Transformative Projects and Programmes? UN agencies, development banks, NGOs • Forestry: National efforts to reduce or directly through national implementing deforestation, increase resilience through entities; the maintenance of ecosystem services • Proposals are accepted three times a and provide alternative incomes to forest year for review at annual board meetings users, support forest rehabilitation; and in-between session either as a full • Climate-smart agriculture: Adaptation proposal or as a concept note; measures that protect soil organic matter, • Funding proposals are coordinated by development of production systems that the national designated authority (DA) and require the no objection from the Further information can adapt to future climate impacts; DA before submission to the Adaptation • Home page: https://www.adaptation- Fund. fund.org/ • Adaptation Fund eligible countries and National Designated Authorities (DA) Directory: https://www.adaptation- fund.org/apply-funding/designated- authorities/ • Adaptation Fund National or Regional Implementing Entities: https://www. adaptation-fund.org/apply-funding/ implementing-entities/

34 What is on offer? What are the opportunities for LDN • The LDN Fund is focused on direct Transformative Projects and Programmes? LDN investment into larger scale land The LDN Fund will invest in profitable restoration, rehabilitation and land projects worldwide to deliver competitive FUND degradation avoidance programmes returns for investors, with a targeted capital that will integrate smallholders and local allocation of at least 80% in developing communities, and also has a dedicated countries, in the following key sectors: window for small scale projects and Small • Sustainable agriculture; Promoted by the United and Medium-sized Enterprises; • Sustainable forestry; Nations Convention to Combat • It will provide long-term financing (debt/ • Other LDN-related sectors, such as green equity) to sustainable land use projects infrastructure and ecotourism. Desertification (UNCCD) that combat land degradation while and Mirova, the responsible producing a financial return; How to access? investment division of Natixis, • The Fund is designed to offer financing • The Fund will only consider projects that the LDN­ Fund will invest in solutions that are not readily available can make a significant contribution to LDN profit-generating sustainable while producing appropriate risk adjusted in the market, providing finance and land management and land strategic benefits in ways other investors returns and complying with robust or banks might not, e.g. longer tenors, environmental and social standards; rehabilitation projects worldwide, longer grace periods, and more flexible • Projects should have already successfully to contribute to the Sustainable repayment schedules; completed a pilot/feasibility project, Development Goal target 15.3 • It is a blended finance fund, pooling and be looking for further investment to on achieving a land degradation resources from both public and private support a scale up; neutral world by 2030. investors committed to achieving LDN. • A technical assistance facility will support LDN project developers and facilitate project preparation. It will The mission of the LDN Fund complement the LDN Fund in supporting is to become a source of the development of a large portfolio of transformative capital bringing attractive LDN projects. together public and private investors to fund projects with environmental, social and economic benefits that contribute to LDN.

Further information • General information: unccd.int/LDN-fund • Project proposals and specific inquiries: [email protected]

4. Financing opportunities for LDN transformative projects and programmes 35 What is on offer? change co-benefits averaged USD3.86 • IDA provides financing for investment billion over Fiscal Year 13-15, with the INTERNATIONAL projects and programmes, as well as majority of the associated investments support to countries in policy dialogue, going to the following sectors: energy DEVELOPMENT capacity building and project identification and mining; water, sanitation and flood ASSOCIATION (IDA) through loans and grants; protection; agriculture, fishing, and • IDA’s lending terms are highly forestry. concessional, meaning that IDA credits carry no or low interest charges, with a For LDN transformative projects and repayment schedule often over 25 to 40 programmes, the following IDA 18 23 The International Development years with a grace period of 5 to 10 years; commitments are noteworthy: Association (IDA) is part of the • During its eighteenth replenishment cycle, • IDA will support at least ten countries World Bank Group and it is the IDA is focusing on providing support and (on demand) to translate their NDCs into specific policies and investment plans fund for the world’s 75 poorest resources to fragile states and states at a rising risk of fragility. It extends favorable in order to start their integration into countries. Since its establishment lending conditions and annual base national budget and planning processes; in 1960, IDA has provided USD312 allocation of SDR (Special Drawing Rights) • IDA will develop at least ten climate- billion in loans and grants. Annual USD15 million to all small countries with a smart agriculture investment plans and commitments have averaged about population under 1.5 million and expands ten programmatic forest policy notes; USD19 billion per year. In its 18th financing to promote resilience through • IDA will increment the Development Policy Operations (DPOs) that support replenishment cycle, IDA has been crisis preparedness and enhanced Crisis climate co-benefits. able to mobilize approximately Response Window; • IDA also provides resources for regional How to access? USD75 billion for the IDA18 period level investments, for example in river 22 from 2017 to 2020. The eighteen basins and regional transport corridors • Projects and programmes such as IDA IDA replenishment’s overarching and has made a commitment to loans and grants are directly implemented theme is “Towards 2030: substantially increase available regional by the national governments. To a limited extend, the World Bank can also sign investing in growth, resilience and IDA resources to supplement countries’ allocations. grant agreements with NGOs, regional opportunity.” and international organizations as part of What are the opportunities for LDN the technical assistance programme. All Transformative Projects and Programmes? requests are coordinated by the Ministries • IDA supports projects and programmes of Finance; in different sectors and thematic areas • IDA resources are made available to IDA fostering poverty reduction and economic eligible countries based on several criteria growth, including forestry, protected and approved according to the objectives areas management, REDD+, agricultural, set in the Country Partnership Framework livestock and irrigation development and of the World Bank Group; watershed rehabilitation, as well as rural • The World Bank is a multilateral development and strengthening rural implementing entity for Adaptation Fund, GCF, GEF and the Climate Investment Further information economies at large; Funds. It manages many partnerships • IDA: www.ida.worldbank.org • IDA is one of the largest financiers of and trust funds. This allows IDA resources • Country Partnership Frameworks (CPFs): climate change adaptation and mitigation to be matched with grants for advancing http://www.worldbank.org/en/projects- and has emphasized in IDA17 and IDA18 innovations, climate finance and critical operations/country-strategies the importance of addressing climate change. IDA’s commitments with climate issues related to LDN transformative action.

36 What is on offer? • The support of MDBs to climate finance • The MDBs provide technical and financial has substantially increased in recent MULTILATERAL support in the form of of credits, years. From 2011 to 2015 the MDBs have concessional loans and grants, as well collectively pledged more than USD131 DEVELOPMENT as technical assistance for low and billion in climate finance. In 2015 alone middle-income countries. Resources are about USD25 billion were earmarked for BANKS (MDBS) 28 allocated for a range of sectors such as climate finance. A substantial part of these agriculture, environmental and natural resources is dedicated to key LDN-relevant resource management and climate action. sectors: 27 per cent, or USD1.3 billion of the Thus, the MDBs play an important role in adaptation finance for water resources, 18 The MDBs commonly refer to six per cent, or USD0.9 billion to sustainable financing LDN; institutions: The World Bank Group crop agriculture, 4 per cent, or USD0.2 • The MDBs are also among the (WBG); The African Development implementing agencies for large climate billion to other agricultural and natural resources, as well as 12 per cent to coastal Bank (AfDB); The Asian Development and environmental funds, including GCF, Bank (ADB); The European Bank for GEF (WB, ADB, AfDB, EBRD, IDB), and adaptation. Of the mitigation finance, 6 Reconstruction and Development Adaptation Fund (WB, ADB, AfDB, EBRD, per cent, or USD1.2 billion were allocated (EBRD); The European Investment IDB), while the Climate Investment Funds to agriculture and forestry related issues, are implemented directly through five including REDD+. In a joint statement Bank (EIB); and The Inter-American 29 MDBs (AfDB, ADB, EBRD, IDB, World at UNFCCC’s COP 21, the MDBs made Development Bank (IDB). In 2015 the Bank Group). This creates opportunities to major commitments to scale up climate MDBs collectively financed operations leverage additional loans and grants. finance – for example, the AfDB made a with own resources and managed commitment to triple its share of climate external resources of approximately What are the opportunities for LDN finance by 2020, and the EIB aims to spend USD130,6 billion. AfDB, ADB, EBRD and Transformative Projects and Programmes? 35 per cent of its total financing outside the IDB have regionally focused mandates • MDBs provide substantial resources European Union on climate action by 2020; on Africa, Asia24, Europe, Central Asia to facilitate LDN through agricultural • MDBs have provided substantial co- and Latin America. The World Bank development, forest conservation financing commitments to their climate Group is the oldest of these development and sustainable land management, financing in 2015 that amounted to banks, with a mandate to end extreme livestock management and watershed USD55 billion, substantially scaling up poverty and promote shared prosperity. climate-related sustainable development rehabilitation through grants, EIB has a strong focus on financing financing to USD80 billion for that year concessional and non-concessional loans, infrastructure within the EU as well as risk-sharing instruments, guarantees and alone; sustainable development financing in equity investments;25 • The MDBs have dedicated private Eastern Europe, African and Caribbean, • The MDBs are committed to the 2030 sector branches that facilitate private and Pacific Group of States. SDG. In a joint statement of the MDBs,26 sector investments and public private partnerships – for example, for the development banks highlighted their Further information agriculture or forestry investments. specific role in contributing to finance and • African Development Bank: www.afdb.org Among these outlets are the World policy dialogue and called for a paradigm • Asian Development Bank: www.adb.org Bank’s International Finance Cooperation shift to unlock, leverage and catalyze • European Bank for Reconstruction and (IFC) or IDB’s Inter-American Investment more public and private resources. It is Development: www.ebrd.org Cooperation (IIC) that have mobilized expected that by 2018, the MDBs will • European Investment Bank: www.eib.org financing from the private sector to increase the support to the SDGs to • Inter-American Development Bank: 27 support sustainable forest management, USD400 billion; www.idb.org; www.iic.org conservation agriculture and other • World Bank Group: www.worldbank.org; projects. In the fiscal year 2016,30 IFC www.ifc.org invested USD3.4 billion in agribusiness.

4. Financing opportunities for LDN transformative projects and programmes 37 What is on offer? What are the opportunities for LDN • In 2014 the members of the IDFC had Transformative Projects and Programmes? INTERNATIONAL collective commitments of USD 630 • The member institutions provide billion.31 Often parts of the bilateral financing for a wide range of LDN- DEVELOPMENT development finance are channeled related projects that include sustainable FINANCE CLUB through these banks, such as KFW for agriculture, reforestation, safeguarding Germany or AFD for France; water resources and environmental • The Development Banks provide a large protection; number of different opportunities for • IDFC members are collectively the largest With focus on long-term financing transformative LDN projects provider of public climate finance globally, financing and contribution and programmes through grants, loans, where developing country banks play a to large, capital-intensive guarantees, technical assistance and particularly important role. Of its annual infrastructure investments and private sector finance leverage; commitments close to USD100 billion are poverty alleviation programmes, • Several IDFC members are accredited related to climate change mitigation and development banks are particularly by GCF and the Adaptation Fund and adaption as well as environmental issues. relevant financing sources for serve as implementing partners for IDFC members, including members the GEF. This enables them mobilize from developing countries, have actively transformational LDN projects. various financial resources to bring contributed to the further development of 23 of these national, bilateral and transformative LDN projects and green and climate bonds; regional development banks from programmes to scale; • IDFC members made a commitment Africa, Asia, Europe, Central and • Several IDFC members focus on the to scale up their efforts in climate South America have pooled their private sector or have established resilient development. At the UNFCCC global expertise and local know- dedicated private sector branches. In COP22 in Marrakech in 2016, IDFC addition to grants, concessional loans has pledged to be a lead contributor how to establish the International and credits, development banks can often to the transformation of Nationally Development Finance Club (IDFC). leverage additional public and private Determined Contributions (NDC) into funds through debt, equity shares or policies, investment plans and financeable de-risking investments.32 De-risking programmes as well as public and private investments for example, use public projects.33 guarantees or insurances to overcome risks.

Further information • International Development Finance Club (IDFC) and members: www.idfc.org

38 What is on offer? • In 1994, France launched the French • Bilateral cooperation provides a large Facility for Global Environment (Fonds number of different opportunities for Francais pour l’Environnement Mondial) BILATERAL supporting transformative LDN projects that provides grants for sustainable and programmes through grants, loans, development, including combatting DEVELOPMENT guarantees as well as technical assistance land degradation. The focus for 2015- COOPERATION and private sector finance leverage. 2018 includes sustainable agriculture, innovative financing of biodiversity and What are the opportunities for LDN integrated management of coastal areas; Transformative Projects and Programmes? • The Norwegian International Climate The net official development Bilateral cooperation remains as one of and Forest Initiative supports REDD+ assistance (ODA) from OECD the main vehicles for advancing LDN. For omplementation. By 2014 it had countries reached a new peak at example: disbursed NOK 14 billion (equivalent USD142.6 billion in 201634 with to USD1.77 billion), through partner • The EU Institutions – mainly the EU the European Commission, United Commissions Directorate General countries, NGOs as well as multilateral for International Cooperation and organizations and banks. States, United Kingdom, Germany, Development, DEVCO - has provided Japan and France being among the nearly a quarter (in the period 2011 – largest contributors in total terms, 2013: USD 839 million) of the global while Norway, Luxemburg, Sweden, resources provided for addressing land Denmark, the UK and Germany are degradation. In addition to various the largest contributors in relation projects implemented by national and to their Gross National Income.35 regional partners and in cooperation with technical NGOs and science and About half of the development technology partners, the EU supports assistance was implemented as global partnership initiatives such as the bilateral programmes and projects Global Soil Partnership and the World in 2016.36 Agroforestry Center;

Further information • Development Assistance Committee (DAC) of the OECD: http://www.oecd.org/ dac/

4. Financing opportunities for LDN transformative projects and programmes 39 What is on offer? • The LDN market is still in its early • The LDN market to date, consists development stage. LDN investments are PRIVATE IMPACT primarily of sustainable land use often related to more mature areas, such INVESTORS investments, and, to a smaller as REDD+ or conservation agriculture. extent, projects for land degradation Approximately 77% of the total rehabilitation; investments relevant for LDN assessed by • Development stakeholders, including Mirova and the Global Mechanism relate The world is facing a 40 governments, bilateral and multilateral to investments in the forestry sector; transformation in the way partners, civil society organizations and • There is a huge potential for future natural resources are perceived. non-governmental organizations are investments with risk-adjusted return Conservation and sustainable working closely with the private sector that appeal to private investors with a management of land and natural to harness their potential for bringing potential for scaling up investments and resources are increasingly seen in finance, technical expertise, service testing new forms of collaboration; 38 • As new investment strategies continue to as investment opportunities and delivery and job creation; • Many private sector initiatives are already be developed and refined, it is expected sources of revenue. Development supporting the ambitious LDN target, to see more projects elevated to the actors are moving from pure including those, which have subscribed to ‘landscape’ level where they not only public and philanthropic- the Bonn Challenge to restore 150 million guarantee the sustainable production driven approaches to holistic hectares of degraded and deforested of a single crop but also the sustainable transformations, which consider lands by 2020. While the private sector management and restoration of other ecosystem services in the target area; the private sector as an essential role in LDN is increasing, many of its • Project developers and investment part of the solution. engagements still require public support to be accelerated. managers are seen as an important engine for the LDN market that requires Industry players and private What are the opportunities for LDN support to grow. Their investments are project off-takers are increasingly Transformative Projects and Programmes? aimed at generating social, ecological and examining their supply chains A study conducted in 2016 by Mirova in financial wealth, essentially decoupling and engaging around LDN collaboration with the Global Mechanism of economic growth from land degradation and the old industrial model of extraction. activities, while project developers the UNCCD with the objective of identifying opportunities and gaps in the nascent LDN and investment managers are market, concluded the following: continuing to test different • Over the past decade 31 private funds investment models that may and project promoters – also called appeal to private investors.37 private impact investors - invested around USD7 billion in projects contributing to LDN. They expect to double their financing by 2021;39

Further information • Unlocking the market for LDN: http://www.unccd.int/Lists/ SiteDocumentLibrary/Publications/ GM_mirova_unlocking_the_market_ for_ldn_june_2016.pdf

40 What is on offer? • Other national financing vehicles offer a • Countries spend through national budgets broader scope, in particular the National 45 substantial resources directly related Climate Funds, which can be used NATIONAL BUDGETS to LDN, from agriculture to forestry and to invest in land-based climate action climate; related to LDN. For example, in Rwanda, AND FINANCING • Public expenditure reviews (PERs) for land the Environment and Climate Change 46 MECHANISMS use sectors are not sufficiently used yet,42 Fund (FONERWA) is the financing so it is difficult to track the actual public facility for implementation of the national spending on LDN. Going forward, more Green Growth and Climate Resilience effort is required to assess the financial Strategy. FONERWA allocates resources Following the orientations of the flows reaching land use sectors at the in the agriculture, energy and forestry Addis Ababa Action Agenda of the country level, including flows for achieving sectors, among others. This intersectoral Third International Conference on LDN. approach is particularly well adapted to Financing for Development,41 “the LDN financing. Among key contributions What are the opportunities for LDN to LDN, FONERWA has invested in mobilization and effec­tive use of Transformative Projects and Programmes? afforestation in flood-prone zones and domestic resources, underscored • There is a need to improve coherence ecosystem rehabilitation for climate by the principle of national in the way countries are spending and change resilience; ownership, [is] central to [the] tracking resources. LDN provides a • Going forward, exploring National LDN common pursuit of sustainable common ground for more systematic and financing mechanisms will reinforce development, including achieving effective assessments; national ownership and command over the sustainable development LDN financing, enabling long-term and • Environmental fiscal reforms for goals”. increased public financing to achieve sustainable LDN financing. Such self- LDN. Fiscal policies could inhibit sustaining funding instruments are successful LDN implementation, for thus very relevant in the framework example because of harmful subsidies. of LDN transformative projects and For example, the Overseas Development programmes to ensure impacts beyond Institute43 has identified 48 different projects termination. These national domestic subsidies worldwide funding instruments can also be used that support the leading causes of for investments with returns and require deforestation; support to design private sector facilities. • National environmental financing mechanisms channel funds from various sources to LDN relevant projects and Further information programmes. National Forest Funds for • The Addis Ababa Action Agenda of example, can be used to make direct the Third International Conference on investments in land-based projects and Financing for Development: http:// programmes. A significant literature on www.un.org/esa/ffd/ffd3/wp-content/ how to use National Forestry Funds is uploads/sites/2/2015/07/Addis- 44 available and compiles more than 60 Ababa-Action-Agenda-Draft-Outcome- examples which could be adapted and Document-7-July-2015.pdf broadened to include dedicated LDN • World Bank website on tools and financing mechanisms; resources for public expenditure reviews: http://wbi.worldbank.org/boost/tools- resources/public-expenditure-review

4. Financing opportunities for LDN transformative projects and programmes 41 5. UNCCD Global Mechanism support Who we are? The Global Mechanism is an institution of the UNCCD that provides support to countries in translating the Convention into action and achieving LDN at the national level.

We are supporting countries in designing and implementing LDN transformative projects and programmes and mobilizing the necessary resources. We act as a connector, advisor and partner in implementation. How do we support Connector Partner in countries? Supporting countries in effectively tapping resources for implementation LDN projects and programmes Engaging with international and national partners by connecting national initiatives to support successful implementation of LDN with financing opportunities. transformative projects and programmes.

Advisor Providing tailor-made and science-based advisory support to national entities in designing LDN transformative projects and programmes.

42 What do we offer?

Global LDN knowledge and LDN multiple country specific benefits analysis Promoting gender-responsive and know-how socially inclusive LDN transformative Translating the LDN conceptual projects and programmes, demonstrating framework into practice. economic benefits of LDN investments and fostering the “common ground” between the three Rio Conventions.

LDN financing

expertise Fostering alliances among financing partners, supporting design of national financing vehicles and mobilizing private investment in LDN including from the LDN Fund.

5. UNCCD Global Mechanism support 43 End notes & photo credits

1 UNCCD (2017). The Global Land Outlook, first 9 UNCCD (2015). Decision 3/COP. 12 Integration 15 Maillard S. (Mirova), Cheung R. (Bonterra edition. Bonn, Germany. of the Sustainable Development Goals and Partners) (2014). Unlocking the market for land targets into the implementation of the United degradation neutrality. Zerner Rachel (Edr.) 2 Ibid. Nations Convention to Combat Desertification Groupe BPCE 3 World Bank Group (2016). Poverty and and the Intergovernmental Working Group report 16 IFPRI (2016). Economics of Land Degradation Shared Prosperity 2016: Taking on Inequality. on land degradation neutrality. http://www2. and Improvement – A Global Assessment for Washington DC: doi, 10, 978-1. unccd.int/sites/default/files/inline-files/dec3- Sustainable Development. https://www.ifpri.org/ COP.12eng.pdf 4 UNCCD (2015). Land matters for Climate. publication/economics-land-degradationand- Reducing the Gap and approaching the 10 Orr, B., Cowie, A., Castillo, V., Chasek, P., improvement target, p.8. http://www.unccd.int/Lists/ Crossman, N., Erlewein, A., Louwagie, G., Maron, 17 International Finance Corporation (2016). SiteDocumentLibrary/Publications/2015Nov_ M., Metternicht, G., Minelli, S., Tengberg, A., Climate Investment Opportunities in Emerging Land_matters_For_Climate_ENG.pdf Walter, S., Welton, S. (2017). Scientific Conceptual Markets An IFC Analysis. Washington, D.C., USA. Framework for Land Degradation Neutrality. A 5 Tengö, M. et al. (2004). Local Management Report of the Science-Policy Interface. UNCCD/ 18 The Business & Sustainable Development Practices for Dealing with Change and Science-Policy Interface. http://www2.unccd.int/ Commission is mobilising a growing community Uncertainty: A Cross-scale Comparison of Cases publications/scientific-conceptualframework- of executives who want to align their companies in Sweden and Tanzania, Ecology and Society 9(3) land-degradation-neutrality with the Sustainable Development Goals (SDGs). p. 4; Tirado, Reyes et al.(2010):Ecological farming: http://businesscommission.org Drought-resistant agriculture, Greenpeace 11 Hallegatte, S., Fay, M., Bangalore, M., Kane, T., Research Laboratories, p. 9. & Bonzanigo, L. (2015). Shock waves: managing 19 AlphaBeta (commissioned by the Business the impacts of climate change on poverty. World and Sustainable Development Commission) 6 UNCCD (2015). A natural fix, a joined- Bank Publications. (2016). Valuing the SDG Prize in Food and up approach to delivering the global goals Agriculture: Unlocking Business Opportunities for sustainable development, p.32. http:// 12 ELD Initiative (2015). The value of land: to Accelerate Sustainable and Inclusive Growth. www2.unccd.int/sites/default/files/ Prosperous lands and positive rewards http://s3.amazonaws.com/aws-bsdc/Valuing- documents/5_2016_Land_SDGs_25_May_ through sustainable land management. http:// SDG-Food-Ag-Prize-Paper.pdf ENG.pdf www.unccd.int/Lists/SiteDocumentLibrary/ Publications/2015_ The%20Value%20of%20 20 Fondo Nacional De Financiamiento Forestal 7 Abramovitz, J. (2001). Unnatural Disasters. Land%20-%20ELD%20Initiative%20 (2015).pdf http://www.fonafifo.go.cr/ Worldwatch Paper 158, Worldwatch Institute, Washington, DC. 13 Nkonya, E. (2016). Economics of Land 21 GCF (2017). Status of Pledges and Degradation and Improvement: A Global Contributions made to the Green Climate 8 Tengö, M. et al. (2004). Local Management Assessment for Sustainable Development. A. Fund Status, Date: 14 July 2017. http://www. Practices for Dealing with Change and Mirzabaev, & J. Von Braun (Eds.). Springer. greenclimate.fund/documents/20182/24868/ Uncertainty: A Cross-scale Comparison of Cases Status_of_Pledges.pdf/eef538d3-2987-4659- in Sweden and Tanzania, Ecology and Society 9(3) 14 ELD Initiative (2015). The value of land: 8c7c-5566ed6afd19 p. 4; Tirado, Reyes et al.(2010):Ecological farming: Prosperous lands and positive rewards Drought-resistant agriculture, Greenpeace through sustainable land management. http:// Research Laboratories, p. 9. www.unccd.int/Lists/SiteDocumentLibrary/ Publications/2015_ The%20Value%20of%20 Land%20-%20ELD%20Initiative%20 (2015).pdf

44 22 World Bank (2017). Report from the Executive 29 MDBs (2015). Joint Statement by the 37 Maillard, S. and R. Cheung (2016). Unlocking Directors of the International Development Multilateral Development Banks at COP 21 in the market for Land Degradation Neutrality. Association to the Board of Governors Additions Paris: Delivering Climate Change Action at Scale: 38 OECD (2016). Private Sector Engagement for to IDA Resources: Eighteenth Replenishment; Our Commitment to Implementation. http:// Sustainable Development: Lessons from the DAC, Towards 2030: Investing in Growth, Resilience www.eib.org/attachments/press/joint-mdb- OECD Publishing, Paris. and Opportunity; Approved by the Executive statement-climate_nov-28_final.pdf Directors of IDA on January 12, 2017 (modified on 39 ibid 30 Fiscal year from July 1 2015 to June 2016. January 31, 2017) - The World Bank, Washington 40 Maillard, S. and Cheung, R. (2016). Unlocking DC, USA. http://documents.worldbank. 31 IDFC (2015). IDFC Green Finance Mapping for the market for Land Degradation Neutrality. org/curated/en/348661486654455091/ 2014, November 2015; IDFC supported by World pdf/112728-correct-file-PUBLIC-Rpt-from- Resources Institute and ECOFYS. www.idfc.org/ 41 https://www.un.org/esa/ffd/ffd3/ EDs-Additions-to-IDA-Resources-2-9-17-For- Downloads/Publications/01_green_finance_ 42 PROFOR (2011). Forest sector public Disclosure.pdf mappings/IDFC_Green_Finance_Mapping_ expenditure reviews, Review and Guidance Note. Report_2015.pdf 23 ibid Washington, DC, USA. 32 IDFC (2012). IDFC – The International 24 Member states of the UN Economic and Social 43 ODI (2015). Subsidies to key commodities Development Finance Club, Work Plan 2: Commission for Asia and the Pacific (UNESCAP). driving forest loss: implications for private climate Leverage Private and Public Funds, Position finance, ODI Working Paper. London, UK. 25 UN (2016). Inter-Agency Task Force on Paper on Leverage of Public and Private Funds. Financing for Development, Multilateral www.idfc.org 44 FAO & GIZ (German Agency for International Development Banks, World Bank 2016. Cooperation) (2013). National forest funds (NFFs): 33 IDFC (2016). Major Development Finance http://www.un.org/esa/ffd/wp-content/ Towards a solid architecture and good financial Institutions move forward to turn the Paris uploads/2016/01/Multilateral-Development- governance. Forestry Financing Working Paper Agreement into action. IDFC Climate Finance Banks_WBG_IATF-Issue-Brief.pdf No. 16. Rome, Italy. www.fao.org/ docrep/018/ Forum. [Press release] https://www.idfc.org/ i3395e/i3395e.pdf FAO. 2015c. Towards 26 World Bank (2015). Joint Statement Downloads/Press/02_general/Press_Release_ effective national forest funds, by R.Matta. FAO from MDBs and IMF Head on Financing for Climate_Finance_Forum_Casablanca_2016.pdf Forestry Paper No. 174. Rome, Italy. Development. http://www.worldbank.org/ 34 OECD (2017). Development aid rises again en/news/press-release/2015/04/16/joint- 45 UNDP (2012). Blending climate finance in 2016, OECD - Paris 11 April, 2017. http:// statement-mdbs-imf-head-financing-for- through national climate funds: A guidebook for www.oecd.org/ dac/financing-sustainable- development the design and establishment of national funds development/development-finance-data/ODA- to achieve climate change priorities. New York, 27 ibid 2016-detailed-summary.pdf USA. 28 AfDB, ADB, EBRD, EIB, IDBG, WBG, (2016). 35 ibid 46 http://www.fonerwa.org/about 2015 Joint Report on Multilateral Development 36 While the overall volume of support for bi- Banks Climate Finance. http://pubdocs.worldbank. lateral, programmes and technical cooperation org/en/740431470757468260/MDB-joint- rose by nearly 3% in 2016 its total net share has report-climate-finance-2015.pdf fallen to 49% in 2016.

45 cover Landscapes of Halimun Salak National Park. Aerial view of the landscape around Halimun Salak National Park, West Java, Indonesia. Photo by Kate Evans for Center for International Forestry Research (CIFOR). www.cifor.org blog.cifor.org https://www.flickr.com/photos/ cifor/10814843034 p. 18 Care Edu https://www.flickr.com/photos/ caremarketengage/6812257045 p. 19 Leonora Enking https://www.flickr.com/ photos/33037982@N04/3447873485 p. 20 Paul Saad https://www.flickr.com/photos/ kartaba/28309534264 p. 21 Yamil Gonzales https://www.flickr.com/ photos/yamilgonzales/25957347303 p. 22 Ryan Kendrick Smith https://www.flickr. com/photos/ryankendrick/2421988139 p. 23 mikeccross https://www.flickr.com/photos/ mccross/293551909 p. 25 Francisco Anzola https://www.flickr.com/ photos/fran001/3557870591 p. 26 Ministry of Forestry and Water Affairs Turkey p. 27 Ryan Woo for Center for International Forestry Research (CIFOR) https://www.flickr. com/photos/cifor/5701868803 p. 34 Nick Findley https://www.flickr.com/ photos/nickfindley/167589771

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