BAKU, Azerbaijan, December 3. To speed up investment in sustainable land management, public and private sectors must address key challenges together. Gelsomina Vigliotti, Vice-President of the European Investment Bank (EIB), said addressing the Ministerial dialogue on finance: "Unlocking public and private finance for land restoration and drought resilience" - UNCCD COP16 in Riyadh, Trend reports.
“Overcoming market failure and investment barriers in agriculture and forest-based sectors is crucial for tackling deforestation, land degradation, and roads through sustainable practices.
Collaboration and strategic investments are key to promoting sustainable land management and achieving the United Nations Sustainable Development Goals. Partnership with governments, NGOs and the private sector are essential to address unsustainable land use practices. At the same time, indigenous and local communities play a crucial role in natural conservation and sustainable livelihoods and their involvement is vital,” she said.
Vigliotti believes that governments need to continuously reassess policy frameworks to ensure they are fit for purpose and aligned with the new challenges.
“Policy reforms can create systems where farmers and foresters derive immediate financial benefits from conserving and restoring land fertility while preparing for droughts. Examples include frameworks for payment for ecosystem services, bonus-malus systems in taxation, or targeted grant incentives.
Multilateral development banks, such as the European Investment Group, can facilitate private capital mobilization through the risking instruments and partnership to broaden investment opportunities. As a public institution of the European Union, the European Investment Bank financing is driven by strong contribution to public policy goals. The Bank is well anchored in the relevant European Union and international policy developments and commitments, playing a leading role in the implementation of the Paris Agreement, and the UN Sustainable Development Goals, mobilizing financing that contributes to all the three Rio Conventions,” she said.
Vigliotti noted that the European Investment Bank has been very active in financing sustainable agriculture and forestry landscape restoration investments worldwide.
“We are committed to supporting UNCCD-aligned goals, recognizing the critical importance of addressing growth, resilience, land degradation, and desertification. We have a significant track record in supporting sustainable land management and restoration, investing about 5 billion euro annually in the bioeconomy, with 1 billion euro supporting UNCCD objectives.
Our approach is rooted in additionality, meaning our financing catalyzes projects that would not otherwise be undertaken. The EIB's sustainability awareness bonds channel funds towards projects that contribute to biodiversity conservation and ecosystem restoration. Our projects are backed by robust environmental and social safeguards, promoting sustainable land management practices, biodiversity conservation and climate resilience. We prioritize investments that benefit local communities, ensuring long-term viability and fostering income generation and employment,” EIB VP added.
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