Incentive and Market Based Mechanisms 5 Innovative financing for SLM Actors & Institutions § Private Sector § Companies & Financing institutions § Farmers § Civil Society Organisations § Foundations § Emerging donors § Decentralised cooperation (local Governments)6 Innovative Financing for SLM Thematic entry points § Climate Change (mitigation and adaptation) § Trade § Poverty reduction and rural. [...] payment to land users for environmental services § Certification and Eco-labeling of products and services – Payment is embedded in the product 9 Opportunities for private sector investment in SLM 10 Why Private Sector? § Land use and land management is to a large degree a private sector activity § Private sector companies are potential investors and funders of SLM/NAP through core business activi. [...] National level context § Institutional & Governance (vision + capacity) § Stable political and economic environment § Regulatory framework in place § Environmental awareness § Understanding of social and economic impact of unsustainable land management Factors determining the suitability of marked based mechanisms 2. [...] Economics of SLM practises § Demand and supply of SLM § Cost and cost-effectiveness § Required time for development and implementation § Amount of resources generated § Synergies with other thematic priorities. [...] Enabling environment for innovative financing sources and mechanisms 32 Enabling environment for innovative financing Innovative sources and mechanisms rely on incentives through regulation and markets Role of the public sector is to provide the enabling environment: institutions, regulations, governance needed for innovative sources and mechanisms to work For example: § National legislation to re.
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