The Land Degradation Neutrality Fund was officially launched at the thirteenth session of the Conference of the Parties (COP13) of the United Nations Convention to Combat Desertification (UNCCD), which took place in Ordos, China. The initiative is promoted by UNCCD and Mirova. The primary aim of the fund is to support sustainable land use practices globally. Initial investors, including the European Investment Bank and the Agence Française de Développement, have announced financial commitments amounting to more than US$100 million, a third of the US$300 million target.

The move is one of the responses to the call for public and private finance in support of global climate action. IDH is the manager of the technical assistance facility for this fund. Mirova is an affiliate of Natixis Investment Managers, who will provide initial seeding for the fund.

By putting sustainable land use at the heart of its climate action, the Land Degradation Neutrality Fund initiative addresses the three summit objectives:

1. Act concretely and collectively: This joint effort to put finance at the service of climate action is the outcome of a unique coalition of actors. It will invest in sustainable land management practices all over the world that have already been shown to be effective, but need suitable financing and technical assistance.
2. Innovate: This will be the first investment vehicle to focus on a Sustainable Development Goal (SDG) target, and using an innovative public private partnership structure. Success could motivate the development of new investment vehicles for the goals.
3. Support one another: Climate change is a global issue, but the effects are distributed unevenly, with especially negative impacts on land users. Acting on a global scale, this investment vehicle will therefore provide flexible financing solutions where traditional bank funding is not available.

The European Investment Bank was joined by the Agence Française de Développement to become the anchor investors and support all the way through the design and structuring phases. Other institutional investors include Fondaction, the first north-American private investor, foundation Fondation de France, insurance companies BNP Paribas Cardif and Garance.

The initiative is also backed by de-risking partners including the Government of Luxembourg, IDB Invest (part of the Inter-American Development Bank group) and the Global Environment Facility. In total, investors have announced commitments of over US$100 million out of a target of US$300 million.

Monique Barbut, Executive Secretary of the UNCCD, said:

“The public sector must be bold and inventive to unleash a revolution in development and entrepreneurship that can tackle the manifold and complex challenges before us – climate change, loss of productive land, lack of jobs, forced migration, droughts, floods, the list seems endless. The moment we see the land differently our horizons open wide. Then, the options and possibilities are endless,”

Philippe Zaouati, CEO of Mirova, commented:

“Implementing such private public schemes is both a challenge, through the pioneering dimension of the approach and the challenge of coordination, but also a great opportunity, through the exchange of knowledge and know-how. Mirova, as a management company dedicated to responsible investment, is committed to supporting initiatives to redirect financial flows towards sustainable development,”

Jean Raby, CEO of Natixis Investment Managers added:

‘We believe it’s our responsibility, as financial institution, to play a role in the transition to a low-carbon and climate resilient economy. This initiative is in line with Natixis’ commitments to provide concrete and creative climate solutions.’