Land Degradation Neutrality Fund: impact report 2020
Discover the first impact report for the LDN Fund.
The Land Degradation Neutrality Fund (LDN Fund) was initiated in 2015 by the UNCCD. The idea was that instead of being considered a challenge, restoring degraded lands could become a real opportunity.
After three years of preparatory work, the LDN Fund became fully operational in December 2018. In March 2021 it reached its final closing with more than US$ 200m committed by public and private investors. Given the initial challenge, reaching such a fund size is an achievement in itself.
However, what matters most are the concrete results and impacts delivered on the ground, for the environment, people and the economy.
In this context we are very proud to present the first impact report for the LDN Fund.
As of December 2020, the fund has five active investments in Latin America, Sub-Saharan Africa and Asia, helping operators develop sustainable land use as well as land restoration and rehabilitation activities.
It is extremely encouraging to see the progress of our investments into nature-based solutions and sustainable land use. We will continue to strive for continuous improvement throughout the LDN Fund. By adopting a collaborative approach, communicating regularly with the UNCCD, our investors, IDH and civil society organisations, we are contributing to establishing robust standards in the market. Indeed environmental and social integrity is a key condition for the success of the natural capital investment theme.
We hope this report stimulates dialogue, inspires entrepreneurs, and encourages other investors, public and private, to allocate more resources to sustainable land use and join us on this journey.
LAND DEGRADATION NEUTRALITY FUND is a Luxembourg Special Limited Partnership (Société en Commandite Spéciale), closed to new subscription. Mirova is the management company. The supervisory authority approval is not required for this fund. The fund is exposed to the following risks: loss of capital risk, deal flow risk, operational risk, liquidity risk, country risk, market risk, legal and regulatory risk, currency risk, counterparty risk, project risk, valuation risk.
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First of its kind, the LDN fund invests in projects involved in sustainable land use – agroforestry, regenerative and sustainable agriculture, sustainable forestry on degraded lands. Mirova today announces the final close of the Land Degradation Neutrality Fund (“LDN Fund”), an impact investment fund that invests in profit-generating sustainable land use and land restoration projects in developing countries. The fund’s final commitments are now over $208 million.
Paris, 15 January 2021 - Fondaction and Mirova, an affiliate of Natixis Investment Managers, welcome the Canadian government’s contribution of 55 million dollars to the Land Degradation Neutrality Fund1 (LDN), as announced by prime minister Justin Trudeau at the 4th “One Planet Summit” held on 11 January in Paris.
Through the UK’s International Climate Finance programme, DEFRA1 will support Mirova's Land Degradation Neutrality (LDN) Fund with an anchor investment of £10m, to catalyse more private investment in land restoration and nature, to tackle climate change. This commitment of public capital will provide a protective cushion that will significantly reduce the risk profile for investments in the sustainable land-use sector and will leverage in the support of over USD $50m of investment from the private sector – inspiring confidence within environmentally sustainable activities and playing a catalytic role in the development of the Fund.