Shifting Finance Towards Sustainable Land Use
The land sector drives about a quarter of anthropogenic GHG emissions each year. It is also an indispensable part of the climate solution by providing a sink of carbon dioxide. The financial incentives that governments put in place in the land sector have the capacity to greatly influence greenhouse gas (GHG) emissions. To tap into this mitigation potential, public policy needs to ensure that finance is directed to activities that avoid or sequester GHG emissions, while improving resilience of rural livelihoods. This report illustrates how public finance influences land use practices and associated greenhouse gas (GHG) emissions, and showcases how policy instruments affecting land use can be redesigned to consider climate goals. It focuses in particular on redirecting agricultural subsidies, and financial markets that influence private financial flows to the land sector.
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