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Unlocking the Investment Potential of Forest & Landscape Restoration

24 February 2015
Story

“Eighty percent of the potential land suitable for forest and landscape restoration (FLR) can be found in drylands”, said Eduardo Rojas, Assistant Director General of the Food and Agriculture Organization of the United Nations (FAO), during the closing session of a two-days expert consultation on Private investments in Forest and Landscape Restoration (FLR), co-organized by FAO and the Global Mechanism of the UNCCD on 30 June and 1 July 2015 in Rome, Italy. Rojas also underlined that FLR contributes to the provision of livelihood opportunities for communities in rural areas and the reduction of forced migration.

The workshop brought together some 30 international experts from multilateral, bilateral and non-governmental organizations, research institutes and the private sector to identify ways for increasing private sector investments in FLR.

Currently, it is estimated that 12 million hectares of land are degraded every year, resulting in a total stock of more than two billion hectares of degraded land that offer opportunities for restoration, and three quarters of this area being suitable for mosaic restoration.

Initiatives around the world aim at up-scaling FLR in order to contribute to global ecosystem restoration goals and promote land degradation neutrality. Impact investors like the Moringa Fund invest in agroforestry systems such as coffee plantations in order to promote sound and viable management strategies at landscape level. Private companies such as EcoPlanet Bamboo promote largescale bamboo restoration for the production of fibre. At the same time, regional initiatives such as TerrAfrica in Africa and “Initiative 20 by 20” in Latin America, as well as national initiatives such as Payment for Environmental Services for sustainable cork oak production in Portugal, supported by WWF and Coca Cola, offer a variety of mechanisms to upscale investments in FLR.

The workshop identified concrete opportunities to upscale FLR, for example through aggregating financial resources at landscape level, bringing together different stakeholders and sectors involved, thus preventing inter-sectoral or resource-use conflicts. However, participants also highlighted that certain key conditions must be in place in order to tap into increased finance for FLR, including an adequate enabling investment environment, the existence of local champions with the necessary skills, and the availability of bankable investment proposals that focus on promising value chains within landscapes. Missing information on possible returns on investments (e.g. ex-ante cost benefit analysis) as well as investment risk assessment and mitigation mechanisms, unclear tenure situation, and lack of coherence among possible investors and landowners/users have been highlighted among the key barriers that need to be overcome for increased investments in FLR.

In order to identify key action required to upscale FLR, FAO and the GM of the UNCCD – through its Rome Liaison Office - established a partnership to deliver a Discussion Paper on “Sustainable Finance for FLR”. The paper will review best available information, discuss issues and success stories related to FLR funding, and assess opportunities to increase access to financing in support to FLR implementation at scale.

The workshop report and the Discussion Paper will be made available soon on the FAO and GM websites. All the material from the workshop, including background papers and presentations, is also available via at the links below.