Publication Details

ILI Analysis FI

Financing Strategies for Integrated Landscape Investment: Integrated Landscape Initiative Analysis

Editors

  • Seth Shames

Authors

Date

April 1, 2014

Support Provided By

Challenge

  • No Related Challenges

Research Theme

Short Summary

Integrated Landscape Initiatives (ILIs) have unique financing needs. ILIs are struggling to meet these needs with existing finance mechanisms. But a range of key investors can coordinate their activities to better serve ILIs and buffer their investment risk.

Summary

Integrated Landscape Initiatives (ILIs) have unique financing needs.

In-depth case studies of three landscapes allowed us to identify an investment pathway for successful ILIs. To succeed, ILIs need investment and financial support timeframes of at least a decade. Patient capital for stakeholder consultation and coordination, concept testing and capacity building is crucial in the early years. Different sources of finance are best suited to different stages in the development and implementation of a landscape initiative, based on the risk/return profile of the investor and the particular finance needs at each stage.

SourcesofInvestmentTimelineandReturnLevel

Integrated landscape investment pathway. From p. 18.

 

ILIs are struggling to meet these needs with existing finance mechanisms.

Scoping and case study results indicate that common barriers exist to scaling up and achieving success. ILIs are largely only able to tap sector-based funds (water, forests, agriculture; either conservation- or production-based).  Public investment plays a key role in supporting landscape coordination and building the enabling environment, but public sector institutions are often highly siloed. Patient, diversified, and long-term funding is difficult to secure.

Key investors can coordinate their activities to better serve ILIs and buffer their investment risk.

Development finance institutions, pension funds, banks, and aggregators all have a role to play, as do many other actors in the finance landscape.

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