Sustainable financing for forest and landscape restoration : Opportunities, challenges and the way forward
Publication year
Resource type
UNCCD Library
Material Type
ebook
ISBN
978-92-5-108992-7
Beyond addressing the communication and awareness gap between investors and FLR project promoters and implementers, many barriers are to be overcome in order to make the FLR project pipeline attractive. FLR values should be recognized, value chains need to be developed and aligned to a landscape vision, local champions have to be trained and local communities enabled, positive externalities and market opportunities (e.g. carbon) have to be harnessed, and investment risks must be covered. Building the enabling environment that makes a landscape “ready for investment” in FLR is critical. For this, governments, NGOs and development cooperation institutions have an important role to play in developing capacities of landscape stakeholders (e.g. local decision-makers, NGOs, small farmers, cooperatives), clarifying costs and benefits of FLR investments, establishing marketplaces for FLR and developing risk coverage mechanisms. This initial “readiness phase” can be covered through different forms of investment from development agencies, NGOs and private equity impact funds that have their own technical assistance facilities. Landscape insurance pioneers such as the Latin American Development Bank (CAF) and the United States Agency for International Development (USAID) have demonstrated the design of partial risk guarantee mechanisms for FLR. Proactive States have developed integrated financing strategies and mechanisms blending different capital sources (national, international, public, private) to invest in FLR in both the readiness and implementation phases. National forest or environmental funds are appropriate for addressing the multiple objectives of FLR, as shown by examples from Costa Rica and Rwanda. FLR finance also shows potential for innovation, as demonstrated by the emergence of non-traditional funding mechanisms such as crowdfunding, based on citizen participation.
Keywords
landscape restoration
biodiversity
land degradation neutrality
climate change
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