1、Financing mechanisms for land-based action Financing mechanisms for land-based action Table of Contents Executive summary.3 Introduction.5 1.Overview of financing mechanisms.6 2.Key requirements for companies using these mechanisms in their strategy.11 3.How to scale up and maximize the impact of th

2、ese mechanisms.14 Acronyms,abbreviations and initialisms.20 Acknowledgements.21 Endnotes.23 Executive summary Key takeaways Land-based investments that reduce or remove greenhouse gas(GHG)emissions present a critical opportunity for companies,particularly those in the agriculture and food sectors,to

3、 contribute significantly to climate mitigation and adaptation.While these sectors are responsible for nearly one-third of global GHG emissions,they offer substantial potential for nature-based climate solutions that reduce emissions and enhance carbon sequestration.Despite this potential,it is esse

4、ntial to bridge the significant climate finance gap of USD$407 billion in land-based or landscape action to achieve the necessary emissions reductions.Companies can align their sustainability goals with business objectives by investing in and beyond their value chains to reduce GHG emissions and con

5、tribute to broader environmental and community benefits.There are various options to choose from in terms of mechanisms for these investments.The companies need to weigh the advantages and considerations against the relevant context to select the optimal approach.A single mechanism alone will not en

6、able the complete achievement of all climate targets,so it is advisable to take a diversified approach that makes use of a combination of mechanisms.Summary of financing mechanisms There are two primary categories of corporate financing mechanisms for land-based investments:value chain investments a