Land Degradation Neutrality (UN SDG 15.3) is a powerful vision for the future. It refers to a state where the global net amount of healthy and productive land remains stable (or increases). 

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The Land Degradation Neutrality Technical Assistance Facility (LDN TAF)

Investments in sustainable land management practices are needed to avoid, reduce and reverse land degradation. However, project preparedness can be a major bottleneck for Sustainable Land Management investment. In 2018, IDH was selected to establish the LDN technical assistance facility (TAF) helps to alleviate this bottleneck, and link projects to the LDN Fund and LDN impacts.

LDN TAF Services

Technical Assistance (TA) is essentially advisory, assistance or training that is provided to enable the investment transaction, reduce risks and increase development impact.

The LDN TAF can provide grants and reimbursable grants to (potential) LDN investment projects, tailored according to the stage and attributes of each project, including:

  • Pre-investment stage TA, for projects that are developing an investment proposal, to provide support to meet the LDN Fund investment criteria.
  • Post-investment TA, to projects in implementation stage so that project developers have greater capacity to implement projects to a higher technical standard and/or with increased positive social and environmental impacts.
  • Impact monitoring TA, to LDN Fund investees to strengthen their capacity to monitor their impacts and practice adaptive management more effectively.

Pre-investment support requests can be submitted to the LDN TAF through this website. Post investment and impact monitoring support for projects are provided based on an assessment that is performed together with the LDN Fund.

TAF service graph

 

Information about application

Is my project a potential investment project for the LDN Fund?

The LDN TA Facility is strongly linked to the LDN Fund. The TAF will only support project which are considered potential investment projects by the LDN Fund. In this, besides the LDN Fund website and financing criteria, good sources of information are:

LDN TAF pre-investment support

The aim of the LDN TAF pre-investment support is to mobilize project proposals of higher technical quality, and with greater potential for Sustainable Land Management and restoration impacts and broader environmental and social co-benefits for the LDN Fund, and as a result for LDN Fund to develop a balanced portfolio of projects selected for investment.

For pre-investment support, the LDN TAF selects projects that have potential to be invested into by the LDN fund, and be investment-ready within 24 months.

The LDN TAF can support projects that have potential for LDN Fund investment with TA for:

(i) Enhancing technical, operational and financial design and structures;

(ii) Project preparedness support related to broader social and environmental impact.

In order to be eligible for LDN TAF pre-investment support, a project needs to demonstrate it meets the LDN TAF eligibility criteria.

The list of eligibility criteria, those of the LDN Fund, and those of the TAF, can be found here.

LDN TAF pre-investment TA application process

The application process for the LDN TAF pre-investment knows 5 stages:

LDN TAF Governance

The TAF is governed by three bodies: the LDN Fund and TAF Strategic Board, the TAF Donor Committee, and the Project Selection Committee.

The TAF and the LDN Fund are overseen by a shared Strategic Board. Based on reports from the TAF and the LDN Fund the Strategic Board provides guidance to the TAF Donor Committee and the Fund Advisory Board regarding the LDN Fund’s strategy, regulatory and market-driven factors and LDN aspects. The Strategic Board also makes recommendations regarding high level resource allocation and prioritization of LDN TAF activities.

The Strategic Board meets twice per year, and summaries of the minutes are available on this website.

The second governance body of the LDN TAF is the Donor Committee. The Donor Committee provides aligned oversight for the operation of the LDN TAF, including reviewing the LDN TAF Annual Plans and Reports, and approving the Project Eligibility Criteria and Project Selection Criteria.
The TAF Donor Committee will interact with and take into consideration recommendations received from the Strategic Board.

A third governance layer in the LDN TAF is the Project Selection Committee. This Committee has the mandate to make the final decision on LDN TAF project selection, in line with the LDN TAF operational manual, including the Project Eligibility Criteria and Project Selection Criteria, as approved by the Donor Committee.
The Project Selection Committee ensures alignment with the LDN Fund by requiring a letter of no-objection for LDN TAF project applications.

The Land Degradation Neutrality Fund

The Land Degradation Neutrality Fund, co-promoted by the UNCCD, is a first-of-its-kind fund investing in profit-generating sustainable land management and land restoration projects that contribute to SDG 15.3.

The LDN Fund provides long-term debt and equity financing for sustainable land use projects that reduce or reverse land degradation. It is structured as a blended finance fund, pooling resources from both public and private investors committed to the goal of stopping land degradation. The LDN Fund is designed to offer financing solutions that are not readily available in the market, providing finance and strategic benefits in ways other investors or banks might not, e.g. longer tenors, longer grace periods, more flexible repayment schedules. Indicative investment features are the following:

  • Instruments: debt (mezzanine, profit sharing loans) and equity (minority or majority position)
  • Tenor: 10 to 15 years
  • Investment ticket size: from USD 5 to USD 20m, with a sweet spot around USD 10m

The LDN Fund is managed by investment manager Mirova, based in France.

News

Publications

Title Type Year
IDH launches Call for Proposal for Land Degradation Neutrality (LDN) Impact Monitoring Design and Baseline development Terms of Reference 2019
Land Degradation Neutrality Technical Assistance Facility – Factsheet Article 2019
Terms of Reference for the LDN TAF Project Selection Committee Article 2019
Terms of Engagement of the LDN TAF Donor Committee Article 2019
Summery of minutes of the first LDN Strategic Board meeting Article 2019

Donors and Partners

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