Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation

The report argues that while hundreds of billions are spent annually on land use, most are 'business-as-usual' (BAU) investments that may increase climate vulnerability. To shift this, the authors propose three tools: the Landscape of Land Use Finance to map current flows and gaps; the Financial Viability-Gap Analysis to identify where public incentives can make green projects financially feasible; and the Public Finance Mapping tool to ensure policy coherence and identify BAU subsidies. These tools aim to help low and middle-income countries scale up private investment in green agriculture, forestry, and land management.

• Land-use sectors are significant contributors to global warming, with land use generating approximately 25% of global greenhouse gas emissions. In more than 60 countries, primarily developing ones, these emissions account for over 50% of national totals.
• Current financial flows for land-use mitigation and adaptation are insufficient, estimated between USD 1.3 billion and 51.8 billion annually. While total investments in agriculture and forestry in developing countries reach hundreds of billions, they are mostly 'business-as-usual' (BAU) and do not support climate resilience or mitigation.
• The Landscape of Land Use Finance tool is designed to provide a quantitative and qualitative overview of public and private investments, helping stakeholders identify 'channels, gaps, and blockages' in financial flows to inform the design of investment plans.
• The Financial Viability-Gap Analysis tool identifies why some green activities are not financially viable compared to BAU alternatives. It suggests three ways governments can close these gaps: reducing costs (e.g., via tax breaks or low-cost loans), increasing revenues (e.g., through price floors or pay-for-performance grants), and improving the enabling environment (e.g., through legal reform and spatial planning).
• The Public Finance Mapping tool allows governments to track public financial instruments to determine if they are coherent and whether they inadvertently support BAU activities over green production, thereby providing a rationale for cross-sectoral coordination.

APA

Falconer, A., Parker, C., Keenlyside, P., Dontenville, A., & Wilkinson, J. (2015). Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/07/Three-Tools-to-Unlock-Finance-for-Land-Use-Executive-Summary.pdf

Chicago

Falconer, Angela, Charlie Parker, Paul Keenlyside, Adeline Dontenville, and Jane Wilkinson. Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation. Climate Policy Initiative, 2015. https://www.climatepolicyinitiative.org/wp-content/uploads/2015/07/Three-Tools-to-Unlock-Finance-for-Land-Use-Executive-Summary.pdf.

Wikipedia

{{cite report |last1=Falconer |first1=Angela |last2=Parker |first2=Charlie |last3=Keenlyside |first3=Paul |last4=Dontenville |first4=Adeline |last5=Wilkinson |first5=Jane |title=Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation |publisher=Climate Policy Initiative |date=July 2015 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2015/07/Three-Tools-to-Unlock-Finance-for-Land-Use-Executive-Summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{falconer2015three, author = {Falconer, Angela and Parker, Charlie and Keenlyside, Paul and Dontenville, Adeline and Wilkinson, Jane}, title = {{Three Tools to Unlock Finance for Land-Use Mitigation and Adaptation}}, institution = {Climate Policy Initiative}, year = {2015}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2015/07/Three-Tools-to-Unlock-Finance-for-Land-Use-Executive-Summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }