Landscape and Jurisdictional Approaches: Opportunities to Finance a Net-Zero Transition

This factsheet from CDP provides an overview of what landscape and jurisdictional approaches (LA/JA) are, key differences between the two terms and why these approaches are vital for financial institutions. The factsheet highlights that 211 companies reporting on forests through CDP identified a total of US$79 billion for forests-related risks. Therefore, investing in initiatives that use LA/JA makes good business sense for financial institutions as they can protect habitats and ecosystems at scale, while also protecting assets in relation to supply chains.

Multiple jurisdictional initiatives are highlighted throughout the document to be used as best practice examples. These initiatives include Brazil’s Mato Grosso Protect, Conserve and Include (PCI) project that aims to provide 6 gigatons of CO2 reduction. The factsheet also provides opportunities for financial institutions in terms of financing sustainable landscapes, such as green bonds like the Forest Resilience Bond. As well as other financing mechanisms like the The &Green Fund and the Biosphere Integrity Fund, that is currently in development.

The document is aimed at private-sector financial institutions and stresses these organisations can benefit from adopting LA/JA. If not, they potentially risk failure in meeting their environmental commitments, if landscape-level considerations are not in their investment decisions.