Incentives to save the forest: Financial instruments to drive sustainable land use

Unsustainable farming and logging is behind most tropical deforestation. There are more sustainable methods that address this by using the land more efficiently, reducing deforestation, but farmers, producers and others will not make this switch automatically. This briefing describes how governments and companies can use basic financial instruments to channel greater investment in this area.
There is a lot of discussion of financial instruments and ‘innovative financial mechanisms’ in conservation circles, but many people working in this area are not experts in finance. This document aims to bridge this gap, helping conservation and development experts understand some of the opportunities for financing sustainable land use.