When it comes to fighting climate change,
cutting back on fossil fuels is not enough. It has become clear that
without urgent changes to land management practices, particularly in
tropical forest countries, we will simply not be able to attain the
emissions reduction targets set out in the Paris Agreement and keep
global temperature increases below 2°C.
The good news is that research
shows there are changes in the way we manage land that can contribute
37 percent of the emissions reductions we need to help meet the Paris
goals by 2030. And we now have a better understanding of the green
technologies needed to achieve these reductions in land-based emissions
The question remains, though, of how to finance such work. This is
especially a challenge for many tropical forest countries that depend on
continued growth of their rural economies and lack the resources to
sustainably develop their land.
Sustainable land bonds offer one
possibility. This report, produced in partnership with the Climate Bonds Initiative, shows how tropical forest countries can use
sustainable land bonds to access the capital they need to transition to
sustainable, low-carbon land-management systems.
By tapping into
mainstream bond markets and matching those funds with results-based
payment agreements for achieving emission targets, they can help deliver
sustainable economies that meet the objectives laid out in the Paris
Agreement and mitigate the impacts of a changing climate.