Desert

Financing the Fight Against Desertification

By Simon Biermann and Elena Chiarini, OECD

Desertification, land degradation and droughts (DLDD) often go overlooked compared to other global crises linked to climate change or biodiversity loss, yet they devastate ecosystems, livelihoods and food security for billions worldwide. As policymakers gather in Riyadh from 2 to 13 December 2024 for the 16th Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD), this is an important opportunity to raise ambitions, scale up resources and strengthen global co-operation to tackle these challenges.

Why do desertification, land degradation and drought matter?

Desertification refers to the process of degradation of arid, semi-arid, and dry sub-humid lands, also known as drylands. It is caused by human activities, such as overgrazing and deforestation, and climatic factors, including droughts. Land degradation negatively affects  at least 3.2 billion people – two in every five people worldwide – endangering food and water security, and putting human health and safety at risk. In Africa, Asia and Latin America, the pace of degradation has accelerated over 2015-19, fuelled by unsustainable land practices, climate change and biodiversity loss, causing irreversible impacts.

Moreover, over the past two decades, the number and duration of droughts has risen by 29%. In 2023, East Africa faced the worst drought in 40 years, with over 1.4 million people displaced in Somalia alone. Drought can lead to famine, malnutrition and wildfires.

Issues linked to desertification represent not only an environmental crisis, but also an economic, developmental and social one. Rural communities that depend on land for most of their needs and the world’s poorest living in vulnerable regions bear the worst consequences.  

Development finance to combat desertification is on the rise

Policies and finance to reverse DLDD are at the centre of sustainable development pathways, and a key area for development co-operation. Through its Strategic Framework, the UN Convention calls for an increase in financial resources for DLDD, particularly through the international development co-operation system. Donors can for instance support partner countries by funding land restoration projects that simultaneously address gender disparities or by implementing drought risk management and resilience-building initiatives.

The latest OECD data show that bilateral and multilateral development finance for DLDD reached an estimated USD 64.8 billion over 2016-22. It grew from 7.7 billion in 2016 to 11.5 billion in 2022, at an annual average growth rate of 8.5%. Bilateral providers represented on average 79% of those flows, and multilateral providers the remaining 21%. These flows accounted for 5.2% of total official development assistance (ODA) flows from Development Assistance Committee (DAC) members over 2016-22.

OECD data also suggest that efforts to address desertification, land degradation and droughts have expanded beyond drylands to other affected areas. The share of DLDD-related development finance to countries with drylands covering up to 70% of their surface decreased from 65% to 59% over 2016-22 out of the total country-allocable DLDD-related development finance. However, this was offset by increases in the shares to countries without drylands and to those with at least 70% of their surface classified as drylands. This reflects a more inclusive approach to addressing DLDD challenges.

Trends in desertification, land degradation and drought-related development finance

These figures show that the donor community has slowly raised its attention towards DLDD issues. However, stronger support is needed to advance the sustainable management of land and resources and to mitigate the adverse effects on vulnerable populations and ecosystems. This includes, among other measures, expanding the availability and accessibility of targeted development finance.

What can we expect from UNCCD COP16?

Policymakers at UNCCD COP16 have a key opportunity to emphasise the critical role of development finance in driving the fight against land degradation. With the increasing feedback loops between climate change, desertification and biodiversity loss, an ambitious, co-ordinated international approach is crucial. The midterm evaluation of the Strategic Framework provides an opportunity to assess the progress of its implementation and strengthen commitments to land-related goals for the coming years. COP16 must serve as a springboard for action to halt and reverse land degradation worldwide and support vulnerable communities and ecosystems. This is a global crisis that can no longer be overlooked.