Land Degradation Neutrality Fund

Overview

The Land Degradation Neutrality Fund (LDN Fund) is a global initiative co-promoted by the United Nations Convention to Combat Desertification (UNCCD) and managed by Mirova Natural Capital. The fund aims to provide long-term financing for sustainable land use projects worldwide, focusing on regions such as Africa, the Caribbean, the Pacific, Asia, and Latin America. Its primary objective is to combat land degradation and promote sustainable land management practices, contributing to the achievement of land degradation neutrality as outlined in the United Nations Sustainable Development Goals. The LDN Fund employs a blended finance approach, combining various financial instruments to support projects in sectors like sustainable agriculture, forestry, land reclamation, and sustainable energy. By investing in these areas, the fund seeks to restore and rehabilitate degraded lands, enhance climate resilience, and improve livelihoods for local communities. The fund's target size is $300 million, with an initial contribution of €5 million from the Luxembourg-EIB Climate Finance Platform and co-financing of €39 million from the European Investment Bank (EIB). The expected impact includes the restoration and rehabilitation of around 500,000 hectares of degraded land and the reduction of CO2 emissions by 35 million tonnes. The LDN Fund's investment strategy focuses on projects that deliver environmental, social, and economic benefits, aiming to create jobs and improve incomes on the ground. By supporting private sector-led initiatives, the fund demonstrates that sustainable land management can be both environmentally responsible and economically viable. The fund's impact report indicates that, by the end of its investment period in 2023, it had supported over 138,000 hectares under sustainable land management practices, benefited over 106,000 employees and smallholder farmers, and sequestered approximately 1.9 million tonnes of CO2. These outcomes highlight the fund's commitment to addressing land degradation and promoting sustainable development globally.

Investment Focus

• Projects must focus on sustainable land use and land restoration.
• Investments are primarily in developing countries, especially in Africa, the Caribbean, the Pacific, Asia, and Latin America.
• Eligible sectors include sustainable agriculture, forestry, land reclamation, and sustainable energy.