Rethinking Sustainable Finance For Drylands

Drylands constitute 45% of global land area. Up to one-third are already degraded and this figure is increasing. Degraded drylands threaten local livelihoods, food and water security, and ecosystem services. They increase health, conflict, and migration risks and are exacerbated by climate change. Sustainable land management (SLM) and land restoration interventions are urgently required. High-level initiatives, such as the UN Decade on Restoration and the G20 Global Land Initiative (G20 GLI), outline strategic frameworks for action. The G20 GLI aims to reduce global land degradation by 50 percent by 2040, supported by an increasing body of scientific literature and case studies of successful interventions. However, sustainable financing models remain a limiting factor – proving challenging to design and deploy effectively in drylands and not keeping pace with demand. Emerging global efforts, from community initiatives to regional endeavours, such as the Great Green Wall and Middle East Green Initiative, require bespoke financing modalities, both conventional and innovative, to support restoration goals. This policy briefsupports Brazil’s G20 theme ofbuilding ajust world and a sustainable planet by “rethinking” finance models for SLM and dryland restoration. It supports G20 policy on fostering investment and innovation for socio-bioeconomy and nature-based solutions, and SDG financing more broadly. The brief explores current financing limitations and outlines models for further consideration and deployment. It seeks to identify synergies between the Rio Conventions on climate change, biodiversity, and desertification and to inform the upcoming 16th Conference of Parties (COP16) of the United Nations Convention to Combat Desertification (UNCCD), where an emphasis on financing is expected. Ultimately, the brief advocates for enhanced investment in SLM and land restoration under relevant G20 Sherpa and Finance tracks.