At least $2.6 trillion in total investments is required by 2030 to rehabilitate over one billion hectares of degraded land and enhance resilience against drought, as stated in the latest report from the United Nations Convention to Combat Desertification (UNCCD).
Financial needs assessment
The report titled “Investing in Land’s Future: Financial Needs Assessment for UNCCD,” revealed at the 16th Conference of the Parties (COP16) to UNCCD in Riyadh, Saudi Arabia, emphasizes the necessity for $1 billion in daily investments from now until 2030 to achieve global land restoration goals and address desertification and drought challenges.
Ibrahim Thiaw, executive secretary of the UNCCD, remarked that to safeguard lives and livelihoods, there is a need to substantially boost investments in land restoration. He noted that the returns, both financial and societal, are irrefutable. Thiaw further explained that every dollar allocated to healthy land is an investment in biodiversity, climate stability, and food security. He also pointed out that the world has the potential to save billions each year and generate trillions more by revitalizing land and enhancing drought resilience.
Impact of land degradation
Currently, nearly 40 percent of the world’s land is degraded, impacting over 3.2 billion individuals, with the heaviest burdens falling on those least equipped to bear them: indigenous populations, rural families, smallholder farmers, and particularly youth and women.
Rising drought challenges
The situation is exacerbated by a significant increase in droughts—up by 29 percent since 2000—with forecasts indicating that by 2050, three out of four people globally could be affected. Yet, despite this growing crisis, the annual global investments required to achieve the land restoration and drought resilience objectives are falling short by $278 billion.
What are the Economic costs of inaction on land degradation?
The economic costs of inaction on land degradation, desertification, and drought are substantial and far exceed the investments needed to address these challenges. Here are some key points regarding the economic implications of inaction:
Annual costs
Desertification, land degradation, and drought currently cost the global economy approximately $878 billion each year. This figure highlights the economic losses linked to reduced agricultural productivity. It also reflects diminished ecosystem services and social costs associated with carbon losses and drought damages.
Impact on agriculture
Additionally, the degradation of land leads to significant declines in agricultural yields. Projections suggest that crop yields could decrease by up to 50 percent in some regions by 2050. This decline would drive food prices up by 30 percent and worsen food insecurity, especially in vulnerable areas.
Social and economic consequences
The socio-economic impacts of land degradation disproportionately affect marginalized communities. These include indigenous populations, rural households, and smallholder farmers. Moreover, these groups often lack the resources to adapt to changing conditions. This further leads to increased poverty and potential conflicts over dwindling resources.
Investment shortfall
Despite the high costs of inaction, global investments needed to meet land restoration and drought resilience goals are falling short by $278 billion annually. This gap highlights the urgent need for increased funding to combat land degradation effectively.
Long-term risks
Without urgent financial support and action, the consequences of land degradation will deepen, leading to instability, forced migration, and further environmental degradation. The costs of inaction will continue to escalate, making proactive investment in land restoration not only beneficial but essential for sustainable development.
Urgency for collaborative action
Louise Baker, managing director of UNCCD’s Global Mechanism, stated that the report underscores the urgent need to bridge the significant financing gap for land restoration. She further emphasized that realizing global restoration targets by 2030 necessitates unprecedented collaboration among governments, the private sector, and international organizations. Baker highlighted that threats from climate change and land degradation are escalating. Increasing investments is crucial not only to meet targets but also to ensure the planet’s future. It is essential for enhancing the well-being of billions around the globe, she added. She also mentioned that the Global Mechanism is actively aiding countries in securing a variety of funding sources, ensuring that no potential for investment in sustainable land restoration is overlooked.
Overview of UNCCD
The UNCCD is an international agreement aimed at combating desertification, land degradation, and drought (DLDD). Established in 1994, it recognizes the importance of sustainable land management and the involvement of local communities in addressing these issues. The Convention has 197 parties and focuses on developing national, sub-regional, and regional action programs to combat DLDD. The recent financial needs assessment is part of the UNCCD’s broader strategic framework for 2018-2030. This framework aims to achieve Land Degradation Neutrality and enhance resilience to climate change.
FAQs
What is the UNCCD?
The United Nations Convention to Combat Desertification (UNCCD) is an international agreement. It focuses on combating desertification and land degradation, particularly in arid and semi-arid regions.
Why is land restoration important?
Land restoration is crucial for improving biodiversity, enhancing food security, and mitigating climate change impacts. Healthy land ecosystems support agriculture, water management, and carbon sequestration.
How can private investment be mobilized for land restoration?
Strategies to unlock private investment include public-private partnerships, blended finance models, and sustainability bonds, which can help accelerate funding for restoration efforts.
