The Land Degradation Neutrality (LDN) Fund has made its first investment, in a number of coffee co-operatives in Peru.
The LDN Fund has selected Urapi Sustainable Land Use, a programme focused on restoring degraded land and promoting sustainable land management in Latin America, for the investment.
Conceived by the project developer Ecotierra, Urapi aims to develop and implement agroforestry projects and to strengthen value chains through partnerships with co-operatives of small-scale producers. Urapi seeks to reverse land degradation and combat climate change by implementing sustainable agricultural practices and strengthening the economic models of cooperatives, while also promoting social inclusion. IDH, which manages the Technical Assistance (TA) Facility of the Fund, will maximize the positive impacts of this and other programmes funded.
The first project developed, financed and implemented by Urapi involves four coffee cooperatives in Peru and aims to reforest nearly 9,000 hectares of degraded land into productive agroforestry systems, sequester and reduce CO2 emissions by 1.3 million tonnes, and improve the livelihoods of 2,400 producers. IDH’s LDN TA Facility will support the program in strengthening its credit management.
As the LDN Fund and TAF entered its operational phase, the board met for the first time on 15 January, led by Monique Barbut, Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD), which promoted and spearheaded the design of the LDN Fund.
Members of the board include Patricia Espinosa, Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), and Cristiana Paşca Palmer, Executive Secretary of the Convention on Biological Diversity (UNCBD). The purpose of the board is to make recommendations on the fund’s strategic direction and ensure its alignment with policies to fight land degradation and climate change.
The fund’s investors include public investors such as the European Investment Bank, the French Development Ministry (Agence Française de Développement, or ADF), and the Government of Luxembourg, as well as private investors such as Fondaction, the Fund’s first North American investor, Fondation de France, BNP Paribas Cardif, Garance, and Natixis Investment Managers. The team continues to raise funds to meet a goal of US$300 million.