There is a growing interest and talk to scale up private finance and investment for sustainable land use. Given that agriculture is the main driver of deforestation, a growing number of agricultural producers, processors, traders and consumer goods companies have commitments to decouple deforestation from production, particularly in the fields of palm oil and wood industries (beef and soy companies are lagging behind). However, despite these pledges and government efforts to reduce deforestation, the world continues to lose more than 7 million ha of tropical forests every year! This is putting into jeopardy international agreements on climate change (Paris climate agreement), deforestation (New York Declaration on Forests) and restoration (Bonn Challenge).
There are a number of barriers related to lack of inclusion of smallholders, weak land titles and forest governance, transparency and tracing commodities across the agricultural value chain that contributes to the status quo. Finance is another major barrier. Costs associated with transitioning to a different business model (e.g. from monoculture to agroforestry), increasing the repayment period to e.g. 10 years taking into account a ‘wait’ period of 3-5 years for some crops such as cocoa and palm oil, setting aside areas for reforestation or protection of high-conservation value and high carbon stock forests as well as involving smallholders with sometimes unclear land titles and limited ability to take on debt, is currently preventing the transition to sustainable land use management.
As a result, land-use related climate finance only accounts for 1-2% compared to investments in renewable energy. The main difference is that unlike energy efficiency and renewable energy, climate finance to reduce deforestation and forest degradation is almost solely driven by grant- related funding. If we are to also see a systemic shift towards climate smart agricultural production, decoupled from deforestation and restoration of degraded land, there will – at least initially – be a need for public finance in the form of junior subordinate debt, credit guarantees and grants to be blended with senior debt from commercial banks to (partly) or to ‘de-risk’ commercial debt or private equity investments thereby mitigating the costs and/or risks of transitioning towards sustainable land use that includes provisions for forest protection, restoration as well as the involvement of smallholders.
This session focuses on the key question how to unlock and scale up climate finance for sustainable land use, particularly from the private sector. What models work and can be scaled up? How can governments contribute to unlocking private capital? What safeguards need to be put in place to ensure environmental and social “additionality” is created? Hear first hand from leading experts in this field! The audience is invited to actively join the discussion to identify the best opportunities to scale up land use-related climate finance.
Climate change is a reality and, for those most affected by it, it is often experienced as a change in the most basic commodity: water. Drawing on the insights of farmers and local communities, this session examines the role of forests in regulating the water cycle.
New research suggests that vegetation plays a critical role in the frequency and intensity of rainfall. This discussion forum will explore the implications on the many areas affected by these effects — land restoration, water management and climate change adaptation — toward an integrated approach for land/water and climate for the SDGs.
The discussion forum will build on a successful online symposium that took place in May 2017. The discussion will also discuss highlights of the current Global Forest Expert Panel (GFEP) on forests and water, which is expected to issue a policy relevant global assessment report in the first half of 2018.
- The presentation: IUFRO-GFEP Global Scientific Assessment on Forests and Water
- IUFRO Global Forest Expert Panel (GFEP) on Forests and Water
- Trees, forests and water: cool insights for a hot world
- Ecological rainfall infrastructure: investment in trees for sustainable development
- Intermediate tree cover can maximize groundwater recharge in the seasonally dry tropics
- Trees, water and climate: Cool scientific insights, hot implications for research and policy
- Cool insights for a hot world: trees and forests recycle water
- GLF Discussion Forum Webpage
- ‘Rainfall Recycling’ as a Landscape Function: Connecting SDGs 6, 13 and 15 – Flyer
The development challenges of an increasingly connected world demand ever more comprehensive answers – and forests are no exception. The risks to forests stem from multiple sources, from the development of mining and road infrastructure, to expanding agricultural production, to growing demand for wood fuels. To address these challenges in a sustainable manner, leaders and stakeholders from other sectors must be engaged to develop solutions that both minimize damage to forests and optimize forests’ contribution to those sectors – in short, “forest-smart” solutions. What’s more, forest-smart solutions contribute to addressing development challenges like food security, poverty reduction, and climate mitigation and adaptation. In several sectors, forest-smart solutions are already emerging because the make economic sense. For example, nature-based infrastructure such as mangroves is often more cost-effective for flood and coastal protection than traditional infrastructure, investment in forests upstream from hydropower dams pays off by reducing sedimentation and extending the life of the damn, and trees on farms improve crop yields by improving soil quality. This session will explain what a forest-smart approach is and showcase how the World Bank, PROFOR, governments, and civil society are advancing this approach through innovative partnerships across sectors. Through opening remarks and an interactive panel conversation, the session will provide examples of how forest-smart mining, disaster risk management, energy and governance are improving development outcomes.
- In the Philippines, Forest Investments Offer Significant Returns
- Addressing Climate Change: Why Forests Matter
- Cutting Deforestation Out of the Cocoa Supply Chain
- Brief on the World Bank’s Support for Forest-Smart Development
- PROFOR’s Forest Smart Initiatives
- Forest-smart strategies are taking off
In the months preceding the GLF, participating organizations and individuals will connect, share, learn and act around five themes:
View the action-packed calendar of GLF online and in-person gatherings, as well as those of our partners.
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