Tropentag, September 16 - 18, 2026, Göttingen "Towards multi-functional agro-ecosystems promoting climate-resilient futures"

Financing mechanisms for resilient multifunctional landscapes in the Global South

¹International Water Management Institute (IWMI), Ghana
²International Water Management Institute (IWMI), Ethiopia

Abstract

Achieving climate resilience, biodiversity conservation, and sustainable livelihoods in the Global South requires a shift from fragmented, sector-specific investments to integrated, landscape-level approaches. Yet financing for multifunctional landscapes remains inadequate, short-term, and poorly coordinated, with persistent gaps in smallholder finance, ecosystem restoration, and the provision of public goods. This paper synthesizes evidence from Africa, Asia, and Latin America to examine available financing mechanisms, assess why current financial flows fall short of supporting integrated landscape management, and identify opportunities for innovation. Using a structured analytical framework, it identifies key constraints, including financing gaps, risk–return mismatches, and institutional barriers that limit both public and private investment. The study outlines a classification of financing mechanisms by funding source, function, instrument, and thematic focus. This includes public finance, private and impact investment, blended finance, market-based instruments, and community-driven models, highlighting how these align with landscape functions such as climate mitigation and adaptation, biodiversity conservation, and livelihood enhancement. Findings underscore the importance of enabling conditions, including coherent governance frameworks, secure land and carbon rights, robust monitoring and verification systems, and effective risk-sharing strategies. The paper develops policy recommendations to strengthen the landscape finance ecosystem, including aligning fiscal policies with nature-positive outcomes, capitalizing national environmental funds, expanding blended finance platforms, and investing in institutional capacity and data systems. These measures can support governments and development partners in mobilising and scaling finance to deliver resilient, multifunctional landscapes that simultaneously advance climate, biodiversity, and development goals.

Keywords: Climate mitigation, community-driven models, sector-specific investments

Contact Address: Solomie Gebrezgabher, International Water Management Institute (IWMI), Accra, Ghana, e-mail: s.gebrezgabhercgiar.org