What we’re learning from blended finance in sustainable land use
The Land Degradation Neutrality Fund and its Technical Assistance Facility demonstrate how blended finance can successfully mobilise private capital into sustainable land management and regenerative agriculture projects in emerging markets.
Over the last six years, the Land Degradation Neutrality (LDN) Fund and its Technical Assistance Facility (TAF) have been using blended finance to channel private capital toward sustainable land management and regenerative agriculture projects in emerging markets.
Working with partners across 13 investments, the LDN Fund ecosystem has offered a rare look into what it really takes to mobilise private capital, especially in higher-risk contexts. Several key learnings have emerged:
- Local developers matter. Sourcing investments through developers embedded in the local context leads to more agile and cost-effective deal structure, and brings invaluable field knowledge to the table.
- Junior investors as key enablers. In countries with higher risks, designing the right fund architecture with first-loss financing, was crucial for attracting other investors and ensuring liquidity for equity.
- Technical assistance makes a difference. Grant-funded support through the LDN TAF allowed projects to push for more ambitious impact targets and stronger results, particularly across its targeted impact themes, including the preservation of natural ecosystems, gender equality and improved smallholder livelihoods.
These insights are not just theoretical, they are informing the design of future funds, shaping how to approach blended finance, and helping close the persistent gap in financing for sustainable land use.
As more stakeholders seek to combine impact with financial returns, we hope these learnings can contribute to building smarter, more resilient investment strategies that work for people, planet and profit.
Read the full publication for more insights and case studies: Sustainable Land Management: LDN Fund's Blended Finance Approach to Unlock Profit with Purpose
About the LDN Fund and LDN TAF
The Land Degradation Neutrality (LDN) Fund, copromoted by the United Nations Convention to Combat Desertification (UNCCD) and managed by Mirova, is a first of its kind impact investment fund investing in profit generating sustainable land management and land restoration projects worldwide. The Land Degradation Neutrality Technical Assistance Facility (LDN TAF) was the grants making arm of the LDN Fund during its investment period and was managed by IDH.