SDG 15 – Life on Land

An increasing number of animal and plant species are dying out: the International Union for Conservation of Nature (IUCN) Red List indicates that over 30,000 species worldwide are currently critically endangered. However, without decisive action this will just be the start of species loss which could shape the course of geobiological history: if the IPBES projections are accurate, the world is on course to lose one in eight species of flora and fauna.

This makes it necessary to create and protect conservation areas, especially in “biodiversity hotspots” which are primarily found in emerging and developing countries. However, as these are mostly poor countries like the Democratic Republic of Congo, Madagascar, Ecuador and Laos, there is still a significant shortfall. Earmarking more protected areas – currently only 15% of rural areas are protected, with some protection only existing on paper – requires additional funds which are sufficiently secure so that their use can be planned.

KfW is working on this. Among other things, it supports a range of nature conservation funds such as the Caucasus Nature Fund as well as several environmental foundations and international NGOs to identify new areas and to better manage existing conservation areas. This enables them to protect flora and fauna effectively while simultaneously ensuring that local people are sufficiently involved in using conservation areas. KfW has declared its intentions to involve more private investors than previously. It can thus use the limited development cooperation funds to open up new sources of financing for conservation.

On behalf of the German Federal Government, KfW currently finances 606 conservation areas in 64 countries around the world, covering a total area of approximately 1.8 million square kilometres. That is more than the area of Germany, France, Spain and Italy put together.

Forests perform many important ecological tasks. As the “lungs of the planet” they supply oxygen, regulate the climate, protect against erosion, store drinking water, produce valuable raw materials, food and medicinal products, cushion the effects of storms and enable endangered species to survive. In rural parts of many developing countries, the forest is also an important economic factor that enables people there to survive. People have been transforming forested areas for millennia, usually for agricultural purposes. In the recent past, however, this practice has taken on extremely dangerous proportions, not least in relation to climate change, because forests play a key role in limiting global warming.

As the originator of the concept of sustainability over 300 years ago (the term originally came from the German forestry industry), Germany is particularly involved in forest conservation. This takes various forms: on the one hand, there are nature conservation areas which are highly important in fighting deforestation and conserving biodiversity. However, the interests of people and local users must not be forgotten. Nature conservation can only work in the long term when both people and nature benefit in equal measure. It is about conserving forests and managing them sustainably. KfW is currently helping to protect over 100 million hectares of forest.

It also promotes the REDD approach (Reducing Emissions from Deforestation and Degradation). The principle here is that climate and development funding is only provided if partner countries can demonstrate that they have reduced greenhouse gas emissions through forest conservation.

Another important aim of KfW is to restore degraded tree-rich landscapes and forests which have been cleared. One concept in this area is “Forest and Landscape Restoration” (FLR). It combines ecological and social aspects.

Alongside forest and nature conservation, new economic practices are needed to avoid further endangering natural resources. These are currently under severe pressure due to activities that include mining, intensive agriculture and deforestation. Reversing this trend requires a transformation to a “green economy” which acknowledges the finite nature of natural resources and respects the “limits of the planet”. This requires incentives and capital. KfW sees itself as a driving force in this regard; it is supporting this change of direction through targeted programmes.

For example, in 2014 it founded the eco.business Fund  (PDF, 1 MB, accessible) on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ). Through green credit lines, it promotes economic activity which contributes to the sustainable use of raw materials and the preservation of biodiversity. It started its work in Latin America and the Caribbean, where it focuses on four areas: agriculture, forestry, tourism, fisheries and aquaculture. It was so successful there that in late 2019 it extended to include Africa. Since it was founded, the fund has helped to protect more than 90,000 hectares of land from deforestation and to save over 4 million cubic metres of water.

KfW is also engaged in innovative work on “green bonds”, playing a double role as issuer and investor. The returns from these bonds are used for sustainability projects. They can be used to mobilise private capital for green investments. KfW is now among the largest issuers of green bonds on the global market. This is also helping to drive the shift in the world's economy towards sustainability.