Since the concept of the Land Degradation Neutrality (LDN) emerged in global policy discourse, a key point of contention has been the development of market-based instruments to promote the LDN agenda. Much of this discussion has focused on the use of LDN-specific offset mechanisms and private-public partnerships. However, there is also an opportunity to capitalise on the synergies that exist between LDN objectives and those of existing market-based instruments that have previously been developed for carbon, biodiversity, bioenergy and in other contexts.

Much of the discussion around market-based instruments and LDN has taken place in relation to the LDN Target Setting Programme (LDN TSP) and the LDN Fund. The LDN TSP was developed under the guidance of the UNCCD’s Science-Policy Interface to help set LDN targets at the national level, while the development of the LDN Fund has been led by the UNCCD Global Mechanism to leverage private finance to support the achievement of LDN.

LDN objectives could be integrated into such schemes through targeted eligibility rules and certification schemes, supporting methodologies, adaptations to multifunctional indices used in auction-based approaches and the restructuring of mandates, tax breaks and feed-in tariffs for bioenergy and other products.