11 December: Finance Day

Finance Day at UNCCD COP16 highlighted the critical need for innovative and sustainable financing to combat land degradation, desertification and drought. Sponsored by the Saudi Environment Fund, this event brought together finance stakeholders — including ministries, financial institutions, donor agencies and investment funds — to mainstream investments in sustainable land management. With these challenges costing the global economy an estimated USD 10 trillion annually, Finance Day sought to raise awareness about financing gaps and drive new solutions for mobilizing capital to achieve Land Degradation Neutrality (LDN).

One of the central issues of the conference — unlocking public and private finance for land restoration and drought resilience —  became the focus of the Ministerial Dialogue on 3 December. It convened high-level leaders and investors to explore key financial mechanisms such as incentives, taxes and subsidies that can support sustainable investments and drive a transition toward a regenerative economy. This dialogue also examined opportunities to repurpose funding toward projects that prioritize job creation, rural development and environmental resilience.

Finance Day aims to promote the role of public and private finance in enabling sustainable land management and restoration, exploring innovative mechanisms like green bonds, impact investing and public-private partnerships. By showcasing successful case studies and fostering collaboration, it aims to bridge funding gaps and increase investment in climate-resilient land management.

Event focus

1. The business case for land: Highlighted the economic benefits of sustainable land management exploring tax, subsidy and incentive adjustments to drive investments that prioritize environmental and social goals including job creation and rural development
2. Innovative financial mechanisms: Showcased solutions such as bonds, carbon credits and conservation finance that can close funding gaps for sustainable land management emphasizing how these tools mitigate risks and attract private sector capital
3. Public-private partnerships for land restoration: Discussed collaborative frameworks where public funds de-risk private investments supporting large-scale projects with high social and environmental returns

Objectives

• Raise awareness of financing needs: Highlight the scale of financing required for LDN and drought resilience emphasizing the need for public-private collaboration to drive impactful investments.
• Promote innovative financing tools: Showcase mechanisms like blended finance and green bonds that attract new sources of funding for land management and restoration.
• Encourage investment and partnership: Foster cross-sector collaboration by aligning private and public finance efforts to overcome barriers and increase financing for sustainable land initiatives.

By mobilizing global finance stakeholders, Finance Day at COP16 aimed to establish robust investment pathways that support resilient ecosystems and communities empowering sustainable land management at scale.