Land-use Finance Tool

The Land-use Finance Tool is a diagnostic tool that enables a quantitative and qualitative analysis of the alignment of public and private spending with climate and forest objectives.

Finance mapping derives from traditional budget review approaches but seeks to offer additional insights to inform policy development. The approach is a quantitative and qualitative analysis of the life cycle of financial flows related to land use in selected sectors. The Tool is a set of guidelines, templates and training materials to assist the analysis of the life cycle of financial flows.

• The Tool can help answer questions such as:
• What is the volume and nature of past and current investments supporting forest and climate objectives?
• What is the volume and nature of investments driving deforestation and forest degradation? In which sectors?
• Who are the main actors involved in financing land-use sectors?
• What are the main funding gaps and barriers to investment in sustainable land use?
• What are the key financial opportunities and priorities to support sustainable land use?
• How could investments be better aligned to climate and forest objectives?
• How has spending for REDD+ evolved over time?
• Do current levels of climate finance meet the country’s climate and forest ambitions?

The Tool builds on several years of work conducted by Climate Policy Initiative on mapping financial flows at global level. Côte d’Ivoire, Papua New Guinea and Vietnam have tested this approach with a specific land-use focus and their experiences are documented here.