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). Achieving LDN is instrumental to meeting many other SDGs, including climate action.

 

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 focuses on large-scale projects that integrate smallholders and local communities, and has a dedicated window for small scale projects and SMEs.

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 fund is designed to offer financing solutions that are required for land use projects that deliver long term, sustainable impacts at scale, in ways other investors or banks might not, e.g. longer tenors, longer grace periods, and more flexible repayment schedules.

The technical assistance facility (LDN fund TAF) is currently being set-up by IDH, the Sustainable Trade Initiative (IDH), in parallel with the LDN Fund, which is developed by responsible investment specialist Mirova. The TAF will provide grants to assist project preparation, as well as post-investment technical assistance.

The global challenge of land degradation

How could land degradation affect our future?

LDN Technical Assistance Facility

Investments in sustainable land management practises are needed to avoid, reduce and reverse land degradation. However, numerous market studies have identified project preparedness as a major bottleneck for Sustainable Land Management investment. The LDN Technical Assistance Facility (TAF) helps to alleviate this bottleneck, forming an essential link between projects, the LDN Fund, and its impacts.

LDN TAF services

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

The TAF provides grants and reimbursable grants, tailored according to the attributes and needs of each project. TA will fall into four main categories:

  • Pre-investment stage project design support, to build a strong and balanced portfolio of bankable projects for the LDN Fund.
  • 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, including on LDN impacts. This enables project developers and LDN Fund to have greater capacity to monitor their impacts and practice adaptive management more effectively.
  • Increase awareness and knowledge of successful models for SLM investment, beyond the LDN Fund and its projects.

TAF service graph

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