Transformative projects and programmes financing
Land Degradation Neutrality (LDN) Transformative projects and programmes (TPPs) aim to strengthen biodiversity conservation by putting in place climate change mitigation and adaption projects.
Projects such as these require adequate financial resources. LDN TPP funding proposals need to take advantage of existing financing opportunities and partnerships, while also tapping into the relevant climate financing resources.
Some key possible funding sources for the LDN TPP are:
- Climate finance funds such as the Green Climate Fund, The Adaptation Fund, and other climate investment funds
- Multilateral development banks and organizations, bilateral development cooperation agencies, national budgets and financial mechanisms, private finance and blended finance such as the LDN Fund and other bilateral and multilateral institutions. These institutions and mechanisms either focus on land degradation or seek direct synergies with climate change mitigation and adaptation, biodiversity conservation, forest and landscape restoration or disaster risk reduction.
Each of these funding sources has its own role in the fight against land degradation. It is important to identify funding solutions that best meet the needs of local communities.
The Global Environment Facility (GEF)
The Global Environment Facility (GEF) acts as a financial mechanism of the UNCCD. The GEF aims to make innovative, integrated investments to achieve transformational change in food security, fresh water, energy, infrastructure, cities, sustainable consumption and production. Since 2006, the GEF has invested more than USD 1 billion in sustainable land management projects and programs.
Climate finance opportunities
Climate finance funds such as the Green Climate Fund and The Adaptation Fund offer many investment opportunities. Funding proposals for LDN TPPs can take advantage of relevant climate financing opportunities through the Green Climate Fund and the Adaptation Fund. LDN TPP proposals should provide a clear narrative and link to land-based climate change adaptation and mitigation. They should also have well-defined and measurable climate indicators, such as reduced GHG emissions. Furthermore, the proposals need to show links to Nationally Determined Contributions.
Other funding opportunities
Multilateral Development Banks (MDBs), bilateral development cooperation agencies, national budgets and financial mechanisms, private finance and blended finance provide a range of funding opportunities for LDN TPPs. MDBs such as The World Bank, The African Development Bank, The Asian Development Bank, The European Bank for Reconstruction and Development, The European Investment Bank, and The Inter-American Development Bank allocate resources for activities such as agricultural development, forest conservation and sustainable land management. They do this in multiple ways, including through grants, loans, guarantees and equity investments.