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Financing Land Restoration and Drought Resilience

Published 24 Aug 2026. Access the PDF directly or read the stored explanation below.

UPSC Daily Current Affairs ENVIRONMENT English 24 Aug 2026

Financing Land Restoration and Drought Resilience

Prelims:

Environment & Ecology

Mains:

GS Paper II — International environmental cooperation and conventions, GS Paper III- Environmental conservation

Current relevance:

At UNCCD COP17 in Ulaanbaatar, Mongolia, India called for diversified, adequate, predictable and sustained international finance to address desertification, land degradation and drought.

Highlights:

India’s Position on Land Restoration Finance:

1.        At UNCCD COP17 in Ulaanbaatar, Mongolia, India called for diversified, adequate, predictable and sustained international finance to support healthy land and drought resilience.

2.      Addressing desertification, land degradation and drought at scale requires finance beyond public budgets and stronger public-private partnerships.

3.      India views land restoration as an investment in food, water, biodiversity, livelihoods and long-term resilience, rather than merely a cost.

4.      Financing should be continuous, verifiable and connected to local communities.

5.      Domestic financial commitments are important but cannot substitute for additional and predictable international finance for restoration and drought resilience.


Blended Green-Finance Framework:

1.        India highlighted a diversified financing architecture to support climate-change adaptation, sustainable land use, forestry and agriculture, afforestation, and biodiversity conservation.

2.      Sovereign Green Bonds were highlighted as an avenue for mobilising capital towards land restoration, drought resilience, sustainable forestry and other environmental and climate priorities.

3.      A blended finance approach can combine different sources of capital for large-scale environmental restoration.

4.      Greater convergence between public and private finance can expand the resources available for land restoration.

5.      Such financing links environmental restoration with broader objectives of climate resilience, sustainable agriculture and biodiversity conservation.


Green Credit Programme:

1.        It enables public and private entities to finance the restoration of degraded forest land.

2.      Green Credits are issued after five years of restoration, subject to achieving at least 40% canopy density.

3.      These credits may be used once towards compensatory afforestation, statutory plantation or CSR obligations.


Compensatory Conservation Regime:

1.        Channels payments received for forest diversion towards compensatory afforestation and ecosystem restoration.

2.      Corporate funding is integrated through environmental regulatory processes.

3.      Bringing together the Green Credit Programme, compensatory afforestation funds, private finance and citizen participation on the same landscape represents a Whole-of-Government and Whole-of-Society approach to ecological restoration.


Significance:

1.        Outcome-oriented Finance: Ensures that financial resources reach the land, ecosystems and communities requiring restoration.

2.      Long-term Resilience: Sustained financing can strengthen ecosystem restoration, biodiversity, livelihoods and drought resilience.

3.      Community Participation: Connecting local communities with restoration finance can strengthen implementation and long-term outcomes.


Way Forward:

1.        Convergence of Finance: Integrate domestic resources, international finance and public-private partnerships for effective land restoration.

2.      Citizen Participation: Strengthen community and citizen involvement in restoration initiatives.

3.      Continuous & Verifiable Finance: Ensure financing delivers lasting restoration and resilience, rather than focusing merely on the amount of capital mobilised.

4.      Knowledge Sharing: Share experience, safeguards, institutional arrangements and lessons learned, while identifying areas requiring course correction.

 

Source: PIB - https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2302615&reg=48&lang=1

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