From ambition to action: Why financing will shape the future of land restoration

Restoring land is no longer a question of knowing what to do. Countries across regions and income levels have identified interventions where land is degrading and how drought risks can be reduced. 

What now determines whether these plans deliver real impact is their financing. 

“We have reached a point where the challenge is not a lack of commitment or solutions,” said Yasmine Fouad, Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD). “The challenge is whether our financial systems are able to support the scale of transformation that land restoration and drought resilience require.” 

Meeting global land restoration and drought resilience targets will require around USD 355 billion per year between 2025 and 2030 – far more than is currently being invested. As long as land is not considered a strategic asset, rather than treated as a secondary environmental concern, this gap will persist. 

Why existing financing approaches fall short 

Today’s financial systems are not designed for the scale, timeframes, or risk profiles that land restoration demands. Public budgets in many countries are under pressure, shaped by competing development priorities and raising sovereign debt levels that result in limited fiscal space. Responsibilities for land, water, agriculture and climate are often split across institutions, complicating coordinated investment. 

Private investment has so far played a limited role. While interest in sustainability is growing, land restoration often involves longer time horizons and higher perceived risks. Without mechanisms to share risk, capital continues to flow elsewhere – even as UNCCD works to mobilize companies and investors through its Business4Land (B4L) platform, including the launch of the B4L Champions’ Council in 2026. 

The result is a persistent mismatch: the economic costs of land degradation continue to accumulate across food systems, water security and national economies, while investment remains far below what is required. 

Closing this gap requires a shift in investment logic – recognizing land restoration as core economic activity, not a side project. 

“Investing in land is one of the smartest investments available today,” Fouad said. “It reduces risk, strengthens resilience and delivers returns that far exceed the cost.” 

For development banks and public financiers, this means positioning land restoration not as a niche environmental issue, but as a strategic asset class – one that underpins food security, climate resilience and long-term stability. 

Turning finance into delivery 

In many countries, fiscal policies continue to favour land-degrading activities, while restoration remains underfunded. Redirecting incentives – by reforming subsidies and aligning taxation and public spending with sustainable land management – can change the economics of land use, making restoration financially viable rather than marginal. 

Aligning agriculture, water, climate and economic strategies is critical to making financing more effective and durable. When policies pull in different directions, investment fails to deliver lasting results.  

Mobilizing private investment at scale will also depend on reducing risk. Strategic use of public and concessional finance can absorb early risks, unlocking private capital at a scale that public budgets alone cannot reach. 

International cooperation remains essential, particularly for countries facing the largest restoration and drought resilience needs. When used strategically, public finance can mobilize additional resources while delivering benefits that extend beyond national borders. 

The cost of inaction 

The economic consequences of inaction are already visible. Land degradation, desertification and drought already cost the global economy close to USD 900 billion each year, through lost productivity, soil depletion, drought damage and carbon emissions. 

By contrast, scaling up investment in land restoration and drought resilience could generate USD 1.8 trillion in annual benefits- an estimated eight-to-one return on investment. These gains go beyond economics, strengthening food security, reducing vulnerability and supporting more resilient societies. 

Every year of delay increases the economic, social and environmental costs. 

From COP16 momentum to COP17 delivery 

Financing was central to discussions at the sixteenth session of the Conference of the Parties to the UNCCD (COP16), which mobilized political attention, launched new partnerships and secured more than USD 12 billion in pledges for drought resilience. 

COP16 showed that political momentum exists. The challenge now is whether financing systems can convert that momentum into delivery. 

Attention is now shifting to COP17 in Ulaanbaatar, Mongolia. With the International Year of Rangelands and Pastoralists in 2026 approaching, the focus will increasingly turn to implementation.  

Rangelands alone cover more than half of the Earth’s land surface and support the livelihoods of over one billion people, yet remain among the most underfinanced ecosystems globally. 

For the UNCCD, the road to COP17 is about ensuring that financing frameworks are designed to deliver -capable of translating ambition into measurable impact on the ground. 

A defining moment 

The plans are in place. The solutions are known. The ambition is clear. What will define the coming decade is whether financial systems evolve to match that ambition – recognizing land as a strategic investment and financing it accordingly. 

“If we align finance with the value of land,” Fouad said, “we can restore ecosystems, strengthen resilience and secure a future that delivers for both people and planet.”