Agricultural Land

With the assistance of a brand new indicator listing and sources platform launched just lately, monetary establishments all over the world can now measure the constructive influence of their investments in biodiversity conservation, adaptation, mitigation, forest safety, and sustainable livelihoods.

The Land Use Finance Impact Hub and its Positive Impact Indicators Directory, which had been launched at this time by the UN Environment Programme (UNEP) Climate Finance Unit and the UNEP-World Conservation Monitoring Centre (UNEP-WCMC), had been created with and for influence funds and sustainably targeted monetary establishments, and intention to help the rollout of efficient business frameworks to trace the environmental and social impacts of land-use investments.

To efficiently deal with the triple planetary disaster of local weather change, biodiversity loss, and air pollution, leaders are urging the world to grow to be not solely net-zero but in addition nature constructive, for the advantage of each individuals and the planet. With the financial crucial to not solely reduce influence but in addition restore ecosystems, this represents a real paradigm shift.

Banks and buyers have gotten conscious of this crucial want and are in search of steering and sensible options to assist drive nature-friendly land-use investments. The new software will allow the finance business to implement coverage efforts and encourage capital flows into nature-friendly belongings and actions.

Strong impact-measurement frameworks are crucial for growing private and non-private investor confidence, attracting numerous sources of concessional finance, and mainstreaming non-public capital in biodiversity conservation, local weather adaptation, mitigation, forest safety, and sustainable livelihoods. They are in step with the newly adopted decision on the fifth UN Environment Assembly, which requires a worldwide give attention to nature-based options.

“The new Land Use Finance Impact Hub, which follows the beta-framework release of the Task Force on Nature-related Financial Disclosures (TNFD), provides an important resource for financial institutions to ensure they are properly considering their environmental and social impacts.”

“The Positive Impact Indicators Directory is a valuable and unique starting point for institutes to track their positive impacts – and aligns with the TNFD call for greater disclosure on nature-related opportunity identification and disclosure,” stated Matt Jones, UNEP-Head WCMC’s of Nature Economy.

The Positive Impact Indicators Directory is a standardized shortlist of key efficiency indicators meant to cowl basic points of long-term land-use funding, such because the pure habitat space that’s successfully protected over time. It goals to help end-users, corresponding to influence funds, asset managers, and debt managers, in figuring out and measuring the constructive environmental and social impacts of land-use investments.

The UN Member States concerned in blended concessional financing can even discover this convenient in monitoring their impacts. The Directory additionally allows customers to see how the proposed indicators relate to world targets, such because the UN Sustainable Development Goals, the Rio Conventions, and the UN Decade on Ecosystem Restoration, permitting monetary establishments to trace their constructive environmental and social impacts at a time when the monetary sector is below growing strain to affect the change required to deal with planetary crises.

In the early days of sustainable land use finance, every fund had its personal set of project-specific Key Performance Indicators, making it tough to mixture influence outcomes on the fund stage and for financiers to determine the place they may greatest make investments their capital to realize the specified impacts,” said Ivo Mulder, Head of UNEP’s Climate Finance Unit. “By taking a standard and standardized method, the Land Use Finance Positive Impact Indicators Directory is a primary step towards resolving this problem.” It improves the efficiency of capital allocation in nature-positive assets, including sustainable land-use assets.”

While the Directory offers a singular, focused shortlist of indicators for constructive environmental and social impacts, it’s only one part of the Land Use Finance Impact Hub.

The Hub will host various knowledgeable discussions, info briefs, and exterior sources to coach decision-makers about numerous environmental and social frameworks. In addition to the present set developed with and for influence funds, the staff hopes to broaden the Positive Impact Indicators Directory to incorporate indicators related to banks.

The Climate Finance Unit of UNEP, UNEP-WCMC, goals to make the Impact Hub the go-to platform for customers in search of steering and instruments to make sure funds are spent effectively, potential dangers are mitigated, and impacts are measured, monitored, and reported on.



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