Leveraging Policy Tools to Improve Impact of Financial Instruments in Sustainable Agriculture, Forestry and Other Land Use (AFOLU)

The Agriculture, Forestry and Land Use (AFOLU) sector plays a significant role in the economies, food and nutritional security, and climate change strategies of many countries. Today the sector faces a range of challenges-deforestation and forest degradation, land-use patterns and changes, anthropogenic fires, biodiversity loss and ecosystem fragmentation, which create adverse climate feedback loops.

This brief illustrates effective instruments that overcome barriers to investments and leverage existing policy tools and instruments to address sustainable financing in the AFOLU sector. The instruments demonstrate how national regulations can be leveraged for impact and capital investment stimulated through smart subsidies and sustainable rural projects.