Large-scale forest and landscape restoration (FLR) and action on land-degradation neutrality (LDN) are expected to be major contributors to and drivers of the successful implementation of climate change mitigation and adaptation provisions of the Paris Agreement. However, as participants at a COFO23 side event learned, greater investment in these areas will also be critical for growing an inclusive green economy that can create decent employment and increase incomes for local populations.
 
The side event’s discussions on sustainable financing for FLR and LDN made clear the scale of investment required. According to a study by FAO and the Global Mechanism of the UN Convention to Combat Desertification released in 2015, US$ 300 billion will be needed annually to achieve the LDN 2030 Sustainable Development Goal target as well as others, including the Bonn Challenge, the New York Declaration on Forests and Aichi 15.
 
Obtaining the necessary levels of private sector finance  will therefore be crucial, and predicated on several factors, including: creating an enabling environment for successful investments; developing investment cases; compiling FLR and LDN investment profitability data; mitigating financial and institutional risks; and promoting marketplaces for FLR and LDN.
 
The success of sustainable FLR and LDN development will therefore be determined in large part by the ability of countries, partners and international agencies to mobilize large-scale private sector finance. It will entail systemic fostering of inclusive FLR and LDN stakeholder dialogues, and sharing of lessons learned and of information on effective financing mechanism practices and gaps and challenges. It will also require seizing opportunities to promote synergies between different financing approaches. 
 

Mobilizing the private sector in restoration activities needs to be stressed as fundamental for success. 
Douglas McGuire, Forest and Landscape Restoration Mechanism, FAO

Biodiversity is a substantial component for successful landscape restoration. 
Ulrich Apel, Global Environment Facility