Financing green water: Mobilizing finance for water-smart forest and landscape restoration

Forest and landscape restoration needs sustained finance to move from commitments to implementation. Yet many initiatives struggle to secure the funding needed to progress beyond the pilot stage. Integrating water into restoration planning can strengthen the investment case by showing how healthier landscapes contribute to water security and climate resilience.

This policy paper examines how different sources of finance can support water-smart forest and landscape restoration throughout its lifecycle. It explains the role of public and development finance in preparing initiatives for investment, and how private finance and market revenues can help sustain restoration over time. The focus is on combining and sequencing funding to meet changing needs.

Attracting investment also depends on how restoration is governed and how results are demonstrated. The paper explores the importance of clear institutional responsibilities, secure land tenure and reliable evidence of water outcomes. It offers recommendations to help policymakers, investors and practitioners put these conditions in place.