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Add to Preferred SourcesKfW will continue to drive forward global nature conservation. To that end, it has established a new fund on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) called the Legacy Landscapes Fund, and provided EUR 82.5 million of seed capital.
The fund is intended to facilitate long-term financing of conservation areas in developing countries and emerging economies, thereby enabling effective management and helping to preserve crucial biodiversity. German Federal Minister for Economic Cooperation and Development, Gerd Müller, officially launched the fund on May 19.
The Legacy Landscapes Fund represents a new, innovative tool for providing each conservation area with long-term basic financing of USD 1 million per annum for the next 15 years. There are plans for 30 conservation areas around the world, each covering an area of at least 2000 square kilometers. This means that well over 60,000 square kilometers of land will be protected by conservation measures, an area slightly larger than England.
Key aspects of the conservation concept include focusing on the needs of the local population, closely involving established local non-governmental organizations in managing the conservation areas, and mobilizing private capital as well as public funds. Private investors have pledged USD 40 million to date.
“Nature provides the foundation for our existence and is the basis for economic activity. It is under greater pressure than ever before, with dramatic consequences for biodiversity and the climate. In many cases, efforts to manage conservation areas sustainably and efficiently were constrained by a lack of long-term financing. The Legacy Landscapes Fund is intended to counteract this problem. If at least 30 percent of the world’s surface is successfully protected, the risk of further pandemics will also decrease. These are often caused by “zoonoses”, infectious diseases that are transmitted between animals and humans,” says Dr. Günther Bräunig, Chief Executive Officer of KfW Group.
“Germany has played a major role in establishing the Legacy Landscapes Fund and is providing 100 million USD to get the Fund started. Private foundations are contributing another 35 million USD for the Fund’s start. With that funding, the LLF will be able to start in seven protected areas in Africa, Asia, and Latin America. The Fund seeks to build a capital stock of one billion USD by 2030 in order to secure ‘everlasting’ core funding for the 30 protected areas. This would make the Fund the world’s largest nature conservation foundation. I invite private and public donors to contribute to the LLF,” said Dr. Gerd Müller, Federal Minister for Economic Cooperation and Development.
The Legacy Landscapes Fund was established on 8 December 2020 as a German non-profit charitable trust with its headquarters in Darmstadt. Stefanie Lang became its director on 1 April.
As a first step, a sinking fund is being set up to get the ball rolling by promoting up to eight conservation areas for an initial period of 15 years. The aim is to develop capital stock for up to USD 30 million per conservation area, with the returns on investment being used to provide the long-term basic financing (“permanent financing”) for the individual conservation areas. The intention is to eventually finance 30 conservation areas and therefore accumulate up to EUR 1 billion. Private financiers can participate alongside public donors. The Gordon and Betty Moore Foundation became the first private donor, contributing USD 5 million.
The selection process has already begun and looks at seven conservation areas in South America, Central, and Sub-Saharan Africa, and Southeast Asia.