The sixteenth session of the Conference of the Parties (COP16) of the United Nations Convention to Combat Desertification (UNCCD) is set to take place in Riyadh, Saudi Arabia, from 2 to 13 December 2024. This significant event holds the key to addressing one of the most pressing global challenges - desertification. Public finance plays a crucial role in supporting long-term restoration projects, while private finance brings in innovative tools such as green bonds and impact investing. The synergy between public and private sectors through collaborations can help bridge the funding gaps and scale up sustainable solutions on a global scale.

Uniting Public and Private for a Greener Planet

Repurposing Harmful Subsidies

In the fight against desertification, repurposing harmful subsidies into incentives for regenerative investments is a game-changer. Instead of supporting activities that harm the environment, these subsidies can be redirected to encourage sustainable land management practices. For example, in many regions, subsidies for excessive water usage in agriculture have led to water scarcity and soil degradation. By converting these subsidies into incentives for drip irrigation systems and water-efficient farming techniques, we can not only save water but also enhance soil fertility and biodiversity. This shift in policy encourages private investors to participate in regenerative investments, as they see the potential for long-term returns and environmental benefits.Another aspect of repurposing harmful subsidies is in the energy sector. Subsidies for fossil fuels have often been a barrier to the transition to clean energy. By redirecting these subsidies towards renewable energy sources like solar and wind power, we can accelerate the shift away from carbon-intensive industries. This not only helps in combating climate change but also creates new investment opportunities in the clean energy sector. Private investors are increasingly showing interest in renewable energy projects due to the stability and growth potential offered by these sectors.

Adjusting Regulatory Frameworks

Regulatory frameworks play a vital role in fostering collaboration between the public and private sectors for sustainable land management. Currently, many regulatory barriers exist that prevent private investors from actively participating in land restoration projects. By adjusting these frameworks, governments can create a more conducive environment for private investment. For instance, simplifying land acquisition processes and providing clear property rights can reduce the risks associated with land investments. This encourages private companies to take on larger restoration projects and invest in innovative technologies.In addition, regulatory incentives can be introduced to promote collaboration between different stakeholders. For example, tax breaks or grants can be provided to companies that collaborate with local communities in land restoration efforts. This not only helps in achieving the social and environmental goals of land restoration but also enhances the reputation and competitiveness of the companies involved. By working together, public and private sectors can leverage their respective strengths and resources to achieve greater outcomes in land restoration.

Exploring Innovative Financial Instruments

Carbon credits and ecosystem services markets are emerging as powerful tools for financing sustainable land management. Carbon credits allow companies to offset their carbon emissions by investing in projects that reduce greenhouse gas emissions or enhance carbon sequestration. Ecosystem services markets, on the other hand, recognize the value of natural ecosystems in providing services such as water purification, soil fertility, and climate regulation. By creating markets for these services, we can put a price tag on nature and incentivize private investors to protect and restore ecosystems.For example, in some regions, companies are investing in reforestation projects to earn carbon credits. These projects not only help in reducing carbon emissions but also provide additional benefits such as improved local water availability and biodiversity. Similarly, ecosystem service markets are being developed to compensate farmers for providing ecosystem services such as carbon sequestration and soil conservation. This creates a win-win situation where private investors benefit from the financial returns while also contributing to the conservation of natural resources.The dialogue at COP16 comprises two important questions. Question 1 focuses on the business case for land and the key challenges that the public and private sectors need to collaborate on to scale up investments. Question 2 delves into delivering a moonshot moment for land by identifying concrete actions to ensure new finance is available for sustainable land management, restoration, and drought resilience. This dialogue provides a platform for ministers, stakeholders, and investors to come together and drive transformative solutions for land restoration and drought resilience worldwide. Through these collaborative efforts, we can make significant progress in combating desertification and building a more sustainable future.