The World Resources Institute lists the following major barriersto invest in large scale land restoration:
- The environmental and social benefits often have no market value;
- Incentives to degrade land outweigh incentives to restore land;
- It is difficult to access climate finance;
- Restoration funding is often confined to small environmental budgets;
- Many restoration projects are too small in size to attract private finance;
- Restoration often requires a long investment time horizon (10–20 years);
- Restoration is considered to be a risky investment.
“We would need size, a minimum capital we can deploy. It can be 100 or 200 million. And the right risk returns. For high risks, a return that is commensurate to that risk. Since we don’t have the expertise ourselves in land restoration, we would need somebody to do that for us. Somebody who knows the operations, but also who knows the financials, that is able to speak to institutional investors and who has track record, who has done this before, experienced in setting up a vehicle for an investor, who knows how to report to us. We want to know the experts in the subject matter…”– Jos Lemmens, senior portfolio manager of natural resources at APG Asset Management.