What is the investment case for sustainable and low-carbon development in sub-national jurisdictions? How could it be realized? What is the structure that is more favorable for investors? What needs to be done at national and sub-national levels to ensure that jurisdictional approach can be well-designed, well-implemented, and well-financed?
This paper shows that jurisdictional approach is an attractive and investable approach when structural and technical imperatives towards its investability are properly addressed. Specifically, the paper addresses the adjustments required to meet the confidence and appetite of investors to invest in jurisdictional approach. Some adjustments may be needed in the structure of the incentives to entice actions to halt deforestation, such as that financial instruments that allows for large-scale financing be managed properly; regulatory instruments that need to be in place to facilitate investor-friendly jurisdictional approach; institutional setting that allows for multi-stakeholder and multi-level planning, implementation, evaluation, and overall governance; and capability to carry out jurisdictional approach at the sub-national level.