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New fund
initiative hailed as an innovative climate
solution at One Planet
Summit
Paris, December
12th, 2017 – The ‘Land Degradation
Neutrality Fund’ initiative promoted by the
United Nations Convention to Combat
Desertification (UNCCD) and Mirova (Natixis) to
support sustainable land use practices globally
is highlighted as a concrete and innovative
climate action during the One Planet Summit.
Initial investors, including
the European Investment Bank and the Agence
Française de Développement, have announced
financial commitments totalling more than USD
100 million out of a target of USD 300
million.
At the One Planet
Summit, organized to celebrate the second
anniversary of the Paris Agreement, the ‘Land
Degradation Neutrality Fund’ initiative is
hailed by Jean-Yves Le Drian, French
Minister for Europe and Foreign Affairs, as an
innovative solution that aligns sustainable land
management with the ambition of the Paris
Agreement. Developed by the UNCCD and Mirova, an
affiliate of Natixis Investment Managers who
also provided initial seeding for the Fund, it
is one of the responses to the call for public
and private finance in support of global climate
action.
Restoring degraded land is a huge,
yet greatly underestimated and underutilized
opportunity to reduce greenhouse gas emissions
and to adapt to climate change. By putting
sustainable land use at the heart of its climate
action, the ‘Land Degradation Neutrality Fund’
initiative addresses the three summit
objectives:
- Act concretely
and collectively: This joint effort to
put finance at the service of climate action is
the outcome of a unique coalition of actors. It
will invest in sustainable land management
practices all over the world that have already
been shown to be effective, but need suitable
financing and technical assistance.
- Innovate:
This will be the first investment vehicle to
focus on a Sustainable Development Goal (SDG)
target, and using an innovative public private
partnership structure. Success could motivate
the development of new investment vehicles for
the goals.
- Support one
another: Climate change is a global
issue, but the effects are distributed unevenly,
with especially negative impacts on land users.
Acting on a global scale, this investment
vehicle will therefore provide flexible
financing solutions where traditional bank
funding is not available.
As early supporter of
the fund, all the way through the design and
structuring phases, the European Investment Bank
was joined by the Agence Française de
Développement to become the anchor investors.
Other institutional investors include
Fondaction, the first north-American private
investor, foundation Fondation de France,
insurance companies BNP Paribas Cardif and
Garance. The initiative is also backed by
de-risking partners including the Government of
Luxembourg, IDB Invest and the Global
Environment Facility. In total, investors have
announced commitments of over USD 100 million
out of a target of USD 300 million. For
more information. click on this link to access
the background
document.
“The public
sector must be bold and inventive to unleash a
revolution in development and entrepreneurship
that can tackle the manifold and complex
challenges before us – climate change, loss of
productive land, lack of jobs, forced migration,
droughts, floods, the list seems endless. The
moment we see the land differently our horizons
open wide. Then, the options and possibilities
are endless,” says Monique
Barbut, Executive Secretary of the
UNCCD.
"Implementing such
private public schemes is both a challenge,
through the pioneering dimension of the approach
and the challenge of coordination, but also a
great opportunity, through the exchange of
knowledge and know-how. Mirova, as a management
company dedicated to responsible investment, is
committed to supporting initiatives to redirect
financial flows towards sustainable
development," comments Philippe
Zaouati, CEO of Mirova.
Jean
Raby, CEO of Natixis Investment
Managers added: ‘We believe it’s our
responsibility, as financial institution, to
play a role in the transition to a low-carbon
and climate resilient economy. This initiative
is in line with Natixis’ commitments to provide
concrete and creative climate
solutions.’
European Investment Bank
Vice President Jonathan Taylor
said: ‘Land degradation has
negative impacts on water, food and energy
security, climate change and biodiversity.
That’s why, as the EU Bank, we are proud to
support the Land Degradation Neutrality Fund – a
first of its kind public private partnership,
attracting investments for sustainable land
management and land restoration projects. This
is important for two reasons: one, because we
need pilots like this investment vehicle to
demonstrate that investing in land degradation
neutrality is good business for the private
sector; and two because it is key to deliver on
the Sustainable Development Goals and Paris
Climate targets. We are committed to making the
Paris Agreement a reality. Outside the EU, we
have pledged 35% of total financing for climate
action by 2020. This includes an increased focus
on impact, adaptation and mainstreaming climate
change considerations into everything we
do.’
For Rémy
Rioux, CEO of the Agence Française de
Développement: ‘AFD is excited to join
forces with other investors for financing
climate resilient projects through Land
Degradation Neutrality Fund and to
participate to the emergence of a new asset
class. This initiative complements AFD’s
intervention in supporting transition through
sustainable management of natural capital
resources as common goods, and improving
socio-economic conditions for family farmers.
The investment policy of Land
Degradation Neutrality Fund is in line
with our commitment to foster the Paris
Agreement implementation’.
Pascal
Canfin, Managing Director of WWF France
says: ‘Every year, no less than 12 million
hectares of arable land are degraded – the
equivalent of one football field every two
seconds – having major consequences on climate
and food security. This Land Degradation
Neutrality Fund, the biggest public private fund
for sustainable land and followed by WWF France
since its creation, is a great opportunity to
channel investments towards innovative projects
for land restauration. It therefore participates
in the fight against climate change and global
insecurity, and aims at ensuring food security
especially for the most vulnerable
populations.’ Note
The “Land Degradation Neutrality
Fund” has not been authorized by any supervisory
authorities and will be qualified as an
alternative investment fund. Its investment
objective, strategy and main risks are described
in its regulatory documentation. Its fees,
charges and performances are also described in
these documents. Investments in this vehicle are
mainly subject to loss of capital risk and
reserved for specific investors, as defined by
its regulatory documentation. Any subscription
in the “Land Degradation Neutrality Fund” will
be offered only to professional
investors.
About
UNCCD
The United Nations Convention
to Combat Desertification (UNCCD) is the only
legally binding international agreement on land
issues. The Convention promotes good land
stewardship. Its 195 Parties aim, through
partnerships, to implement the Convention and
achieve the Sustainable Development Goals. The
end goal is to protect our land, from over-use
and drought, so it can continue to provide us
all with food, water and energy. By sustainably
managing land and striving to achieve land
degradation neutrality, now and in the future,
we will reduce the impact of climate change,
avoid conflict over natural resources help
communities to thrive. Visit: www.unccd.int
About
Mirova
Limited liability company –
Share Capital: € 7 461 327,50
Regulated by
the Autorité des Marchés Financiers (AMF) under
n° GP 02014
RCS Paris n°394 648
216
Registered Office: 21 quai d’Austerlitz -
75 013 Paris France
Mirova is an
affiliate of Natixis Investment Managers
dedicated to responsible investment. Through a
conviction-driven investment approach, Mirova’s
goal is to combine value creation over the long
term with sustainable development. Mirova’s
talents have been pioneers in many areas of
sustainable finance. Their ambition is to keep
innovating to propose the best tailored and most
impactful solutions to their clients.
Further information on: www.mirova.com
About Natixis Investment
Managers
Natixis Investment Managers
serves financial professionals with more
insightful ways to construct portfolios. Powered
by the expertise 26 specialized investment
managers globally, we apply Active Thinking℠ to
deliver proactive solutions that help clients
pursue better outcomes in all markets. Natixis
ranks among the world’s largest asset management
firms1 ($961.1 billion AUM2). Headquartered in
Paris and Boston, Natixis Investment Managers is
a subsidiary of Natixis. Listed on the Paris
Stock Exchange, Natixis is a subsidiary of BPCE,
the second-largest banking group in
France.
1 Cerulli
Quantitative Update: Global Markets 2017 ranked
Natixis Investment Managers (formerly Natixis
Global Asset Management) as the 15th largest
asset manager in the world based on assets under
management as of December 31,
2016.
2 Net asset value
as of September 30, 2017. Assets under
management (“AUM”), as reported, may include
notional assets, assets serviced, gross assets
and other types of non-regulatory
AUM. |
