12 Sep 2017 Through a competitive bidding process, IDH is proud to have been selected as the manager of the Technical Assistance Facility (TAF). The announcement came today at the thirteenth session of the Conference of the Parties (COP13) to the United Nations Convention to Combat Desertification (UNCCD).
The Land Degradation Neutrality Fund (LND), is a global impact investment vehicle co-promoted with the Global Mechanism of the UNCCD.
Expected outcomes and results of the LND Fund
IDH’s role as Technical Assistance Facility Manager
IDH will operate as Technical Assistance Facility Manager (TAF), building upon our experience enabling investment in sustainable supply chains and landscapes, and our ability to leverage partnerships for the redirection of financial flows towards sustainable business models.
“IDH will help build an investment pipeline, by co-designing investable, sustainable land use activities.” said Daan Wensing, Director of IDH Landscape Programs. “Through building investable projects and catalyzing additional private investments, we aim to demonstrate that sustainable land management can be environmentally, socially and economically viable.”
The need for a TA Facility
The LDN Fund Technical Assistance Facility (TAF) is created to support the development of promising sustainable land use projects seeking investment from the Fund. Projects targeted by the Fund have the potential for great impact while delivering sufficient risk-adjusted returns. However, investment readiness of projects can be a major bottleneck, as many projects require commercial improvement or need assistance to maximise and monitor positive impacts.
TA is a very powerful instrument to mitigate risk and increase the social and environmental impacts of investments. IDH has found this is especially the case with TA provided in the context of:
The TAF will be sponsored by public institutions or private donors – including the Global Environment Facility who confirmed its commitment.
Naoko Ishii, CEO and Chairperson, Global Environment Facility has said: “the UNCCD emphasizes the importance of working together with the private sector. Smallholder farmers and forest workers need to be supported for their sustainable livelihood, by being linked to the markets. In this regard, a proposed Land Neutrality Fund is eying to tap the capital markets by creating innovative business opportunities in this space to scale up investments which may not happen without public and private partnership. The GEF is pleased to announce our support for the LDN Fund by providing resources for technical assistance and de-risking.”
The Land Degradation Neutrality Fund will be managed by MIROVA, a subsidiary of Natixis Asset Management with share Capital of € 7 461 327,50, for more information check their website: http://www.mirova.com