Fiscal policies and incentives are typically key underlying drivers of forest and land use change, though documentation of their impacts on land use is often lacking.

This exploration of fiscal incentives promoting oil palm production in Indonesia sought to better understand what current fiscal policies and instruments exist that influence oil palm production in Indonesia, the impacts of these incentives on forests and peatlands and what the Indonesian government could do to create better compatibility between oil palm production, green economy and livelihood objectives.

Link to paper: English version / Bahasa version.

This study uncovered a wealth of models for financing Integrated Landscape Management (ILM), and for promoting integrated investments in agriculture, ecosystems and rural development.

The report provides a foundation for building robust investment platforms, including more effective private-public partnerships.

The cases from innovative financial institutions, as well as the case studies of landscapes from Brazil, Kenya and South Africa, demonstrate promising ways to add value and attract investment that benefits people, food and nature.

How can alternative investment models be applied to agricultural production and related supply chains in developing countries that benefit the investor and the farmer and address food security and economic development needs? A large part of the solution lies in supporting inclusive agricultural production and supply chain business models that engage the world’s 500 million small-scale farmers and business models that efficiently manage scarce resources such as water.  Such investments create long-term value and mitigate long-term risks.

Both investors and civil society seek positive models from which to learn from, in order to guide willing capital to inclusive and sustainable agriculture. This report is aimed at both audiences, and beyond. Based on eight case studies, a literature review, and expert interviews, this report identifies answers to:

• Provide case studies of investment models that have been used to invest in production-level agriculture and in the agricultural supply chain in developing countries (specifically in Africa) that reduce long-term investment risk and have positive economic, social and environmental outcomes.

• Investigate whether these models are scalable, replicable and applicable to investors who are currently interested in deploying capital into this area.

• Suggest whether current social and environmental guidelines and principles for investors looking to invest in agriculture in developing countries are sufficient to enable ‘good’ and ‘bad’ investments to be distinguished.