Landscape Resilience Fund (LRF)

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Zimbabwe

LANDSCAPE RESILIENCE FUND (LRF)

Overview

Reducing carbon emissions to net-zero and keeping global warming below 1.5°C is now as urgent as ever - but so is adjusting to the hazards of a warming world.

The new Landscape Resilience Fund helps communities most vulnerable to climate risks by financing climate-resilient SMEs that support smallholders, combined with funding for sustainable landscape activities.

About the LRF

Nhiên Thảo rel= © Nhien Thao / WWF-Viet Nam

The Landscape Resilience Fund (LRF) is an impact-driven, independent foundation that mobilizes private and public climate finance for landscape, where communities are most vulnerable to floods, droughts and other climate-related risks.
The LRF was co-developed by the South Pole and the World Wide Fund for Nature (WWF). With the support of the Global Environment Facility and the commitment of CHANEL as an anchor funder, the fund is now rallying more institutions to invest in a resilient future.
While public finance is woefully insufficient to meet adaptation finance needs, the Landscape Resilience Fund uses a blended finance approach, the most effective way to galvanize leaders to take on this huge global climate change adaptation task.
Blended finance means that both private and public sectors benefit from investing in adaptation. Blended finance can nudge the private sector to invest in adaptation and allows for better risk management. More importantly, it helps to close the adaptation finance gap.

Photo: Nhien Thao Company with ethnic minority communities in the Northern Mountains Region, Huong Hoa district, Quang Tri province.

The Project's Goal

The Landscape Resilience Fund (LRF) aims to support the most vulnerable people in the land-use space to effectively adapt to climate change by investing in small and medium enterprises (SMEs) and other projects that target adaptation and resilience through sustainable agriculture, forestry, and other nature-based solutions, while additionally delivering biodiversity and climate change mitigation benefits.

The LRF seeks to use an innovative, blended finance approach to ensure climate-smart solutions for vulnerable communities, from struggling farmers to forest-dependent producers and Non-Timber Forest Product (NTFP) collectors. Through investing in small and medium enterprises (SMEs) and other projects that have the greatest potential to protect people and nature in landscapes facing disastrous climate change impacts, the LRF expects to create positive impacts for livelihoods, gender, biodiversity, conservation, and climate change.

The Central Annamites in Viet Nam is the first landscape supported by LRF. Even considered as one of the 200 priority ecoregions globally, the Central Annamites is being negatively affected by impacts from climate change and humans. Since 2020, the WWF-implemented Dutch Fund for Climate and Development (DFCD) has supported sustainable enterprise developments in this region, and the LRF will build on this work.

Over 6 years starting from July 2021, the LRF will deliver essential financial support to small and medium-sized enterprises (SMEs) and cooperatives with small loans (typically $0,5m to $1m) and technical assistance grants tailored to the needs of the business supporting a transition to a sustainable climate-resilient economy.

Natural products by Nhien Thao Company

Specific Targets

Connecting with SMEs and stakeholders to identify investment opportunities and bankable projects that bring economic benefits while contributing to solving climate change issues and sustainable development.

Training for Small and medium enterprises (SMEs) and forestry cooperatives on a business plan and accounting / financial management (to professionalize their business activities), market assessment and marketing, business development in responsible and green models, and access to financial services, etc.

Sharing experiences by organizing Multi-stakeholder platforms/workshops to share information about the LRF and sustainable business development opportunities for stakeholders. At the same time, analyze the role of stakeholders in the landscape, and promote collaboration between actors, building a shared goal/vision for sustainable landscape development.

Risk Management by developing a landscape report on social, environmental, and governance risks in the landscape, and supporting SMEs to grow responsibly by solving risk issues and improving risk management.

Landscape monitoring by development of Key Performance Indicators at the landscape scale.

Potential Projects

The Luc Dong rattan processing company is seeking to expand the raw material area to develop a sustainable rattan value chain, and add more rooftop solar power for its factory. The LRF is currently providing funding for technical assistance to develop Luc Dong’s business plan and financial model, with a view to potentially providing a loan.

Who can apply for support from the LRF?

Small and medium enterprises, cooperatives in the fields of investment in agriculture, forestry, or agro-forestry combined.

Projects should have strong business models and experienced management team, with clear potential for climate change resilience and positive environment and social impacts.

Contact

Mr Ton That Minh Khanh
LRF Manager - Central Annamites
Tel: +84-913439204

WWF-Viet Nam - Hue Field office
150 Truong Gia Mo str, Vy Da Ward, Hue City