Saudi Arabia's presidency of COP16 has spotlighted the pressing need for enhanced funding for land restoration, urging the private sector to take a leading role in addressing the critical financial shortfall. As the world confronts escalating environmental challenges, the call aims to overcome what experts have described as a "blackhole" of financial resources necessary to restore degraded lands globally.

The issue of land restoration has gained momentum as part of the broader climate action agenda, yet financing remains one of its most significant barriers. Despite clear scientific consensus on the vital role that restored ecosystems play in mitigating climate change and enhancing biodiversity, funding for these projects has been notably insufficient. The UN Environment Programme estimates that the global cost of land degradation could reach up to $23 trillion by 2050, yet the resources allocated for land restoration currently fall far short of this need.

This funding gap is particularly evident in developing countries, where land degradation is often most severe, but financial mechanisms for restoration are weak or nonexistent. These regions, despite being the most affected by desertification and deforestation, face the additional challenge of limited access to capital markets. With the private sector holding significant untapped potential to bridge this gap, the Saudi COP16 presidency has urged businesses, investors, and philanthropists to contribute meaningfully to land restoration initiatives.

The Saudi government’s advocacy for private sector engagement comes at a pivotal time. As COP16 moves forward, the focus has expanded beyond state-driven commitments to include the crucial role of non-state actors in achieving global environmental goals. Land restoration is not just an environmental issue but also an economic one, with the potential for revitalizing local economies, improving food security, and reducing the impact of natural disasters. These aspects are being emphasized as part of the broader appeal to the private sector, particularly corporations with interests in agriculture, infrastructure, and energy, all of which are directly impacted by land health.

Several major companies have already stepped up their involvement in sustainability initiatives related to land use. However, the overall level of investment remains insufficient to address the scale of the restoration challenge. While countries have made progress in setting national targets for land restoration, these goals often lack the financial backing required for successful implementation. Saudi Arabia’s message at COP16 is clear: without private sector involvement, the ambitious goals set under the UN Decade for Ecosystem Restoration and the Paris Agreement will remain out of reach.

The private sector’s role in financing land restoration is not just about donating funds; it involves integrating environmental, social, and governance (ESG) factors into business practices and aligning investments with the restoration of degraded lands. By leveraging market mechanisms such as carbon credits, green bonds, and innovative financing structures, the private sector can help unlock much-needed funds for restoration projects that would otherwise be financially unfeasible. The shift toward nature-based solutions, such as reforestation, wetland restoration, and sustainable agricultural practices, presents lucrative opportunities for businesses willing to invest in the planet’s future.

Saudi Arabia has emphasized the importance of building robust financial instruments that cater specifically to land restoration. This includes creating transparent and accountable mechanisms for monitoring progress and ensuring that investments are channeled effectively toward restoration outcomes. The kingdom’s vision calls for an international framework that incentivizes private investments and establishes clear guidelines for land restoration projects, making it easier for companies to participate while ensuring that their contributions lead to measurable environmental improvements.

Experts have underscored the importance of collaboration between governments, the private sector, and civil society to overcome the land restoration finance gap. The establishment of public-private partnerships (PPPs) has been identified as a promising model for scaling up restoration efforts. These collaborations can combine government policy support with private sector efficiency and expertise, while also engaging local communities in the restoration process. Such partnerships could potentially leverage public funds to de-risk private investments and catalyze larger flows of capital into restoration projects.

The Saudi COP16 presidency has urged a focus on long-term financial sustainability for land restoration efforts. Restoration is a time-intensive process, often taking decades to see significant results. As such, the private sector must not only provide initial funding but also commit to supporting these projects over the long haul. This includes fostering a deeper understanding of the financial benefits of land restoration, including enhanced soil fertility, improved water retention, and better resilience to climate shocks.