Government expenditure plays a significant role in financing nature accounting by more than 500 billion USD per year. With almost half of it flowing into agricultural subsidies, redesigning government expenditures and ensuring policy coherence among sustainable consumption and production patterns are critical to turning the tide of deforestation.
Growing momentum on result-based finance (carbon markets and REDD+) may serve as complementary financing opportunities for such actions as the demand for carbon offsets is rapidly surging to meet the Paris agreement targets, stimulated by the recent approval of Article 6 at the COP26.
Financial innovation in legal and sustainable commodity supply chains, and carbon market driven mechanisms to foster forest-positive agriculture is urgently needed to halt deforestation and effective investment.
This session will share the challenges of and opportunities for mainstreaming forest-positive commodity finance from both public and private sector initiatives with the aim to transform the global food system, to reduce the impact on deforestation and to support sustainable commodity production.
ST 1: Turning the tide: reversing deforestation and degradation