The LDN Fund and TAF have now been operational for over 3 years.
LDN Insights is a platform developed by the LDN Fund and TAF, with input from investees and project partners, to share practical insights and lessons learns from LDN Fund and TAF operation. Through this, we aim to inspire others and contribute to the global agenda on Land Degradation Neutrality.
LDN Fund and TAF partnership
Many of the successful scale-ups of projects supported through investments by the LDN Fund and LDN TAF are relatively new players with innovative and inclusive approaches, for example by engaging with farmers through outgrower schemes, or scaling agroforestry systems. These projects often have not yet reached the point of break-even and therefore require a long-term investor that can afford to wait until they are cash-flow positive.
Enabling investment readiness
Sustainable land use projects may offer low and volatile financial returns relative to the risk and complexity involved. The projects invested in by the LDN Fund typically overcome this challenge by combining different revenue streams (e.g., cash crops and carbon finance), sustainably increasing yields/ quality, and adding value through processing.
Maximazing impacts and reducing risks
Landscape approaches are often needed to help create stronger farmer and community links, develop clear and agreed-upon land-use plans (following FPIC/participatory approaches), and identify opportunities to maximize impact, especially concerning restoration and conservation of land. Most projects exhibited some degree of landscape- type approach when selecting planting areas.
SLM investments and LDN goals
This is where investments in sustainable land use are needed. Examples of investing in sustainable land management include financing of businesses that contribute to biodiversity and adaptation, including sustainable forestry and agriculture; green infrastructure investments; climate mitigation projects; and payment for ecosystem services.