Development finance in the land sector: tracking progress towards Paris

The report argues that current DFI and MDB frameworks for the land sector are insufficient for Paris alignment, often prioritizing economic development and efficiency over transformative climate action. Analysis of finance in Argentina, Egypt, and Viet Nam reveals that over half of DFI funding since 2015 lacked adequate climate risk safeguards, with significant risks linked to deforestation and GHG-intensive commodities.

• Current joint frameworks used by Multilateral Development Banks (MDBs) for Paris alignment are considered inadequate for the land sector because they rely too heavily on national policies (NDCs and LTS) which are themselves insufficient to meet Paris objectives.
• DFI land sector strategies prioritize economic development and market growth over transformative climate action, focusing on efficiency gains rather than a clear vision of a Paris-aligned sector.
• Analysis of DFI finance in Argentina, Egypt, and Viet Nam since 2015 indicates that more than 50% of provided finance lacked sufficient safeguards to manage climate risks.
• High-risk DFI private sector lending is primarily driven by a lack of value chain transparency, specifically in projects increasing the production of commodities that drive deforestation or providing working capital to companies involved in cattle, dairy, and first-generation biofuels.

APA

NewClimate Institute (2022). Development finance in the land sector: tracking progress towards Paris. http://www.newclimate.org/resources/publications/development-finance-in-the-land-sector-tracking-progress-towards-paris

Chicago

NewClimate Institute. Development finance in the land sector: tracking progress towards Paris. 2022. http://www.newclimate.org/resources/publications/development-finance-in-the-land-sector-tracking-progress-towards-paris.

Wikipedia

{{cite report |author=NewClimate Institute |title=Development finance in the land sector: tracking progress towards Paris |date=6 December 2022 |url=http://www.newclimate.org/resources/publications/development-finance-in-the-land-sector-tracking-progress-towards-paris |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2022development, author = {{NewClimate Institute}}, title = {{Development finance in the land sector: tracking progress towards Paris}}, institution = {NewClimate Institute}, year = {2022}, month = dec, url = {http://www.newclimate.org/resources/publications/development-finance-in-the-land-sector-tracking-progress-towards-paris}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }