Luxembourg and the United Nations Convention to Combat Desertification (UNCCD) officially launched the initiative for the Drought Resilience Investment Facility (DRIF) during the seventeenth session of the Conference of the Parties to the UNCCD (COP17) in Ulaanbaatar, Mongolia, from 17 to 28 August 2026. This milestone marks a high-level political commitment, paving the way for the future structuring and implementation of this innovative financial vehicle.

Established through a partnership between Luxembourg and the UNCCD, and with the support of the International Drought Resilience Alliance (IDRA), DRIF is the first global catalytic finance platform dedicated to strengthening drought resilience. The Facility aims to mobilise public and private capital to support investments in sustainable agriculture, water security, land restoration and nature-based solutions.

Drought already affects around 40 per cent of the world's land and is having growing impacts on livelihoods, food security and economic development. As climate change accelerates, strengthening resilience to drought is becoming an increasingly urgent global priority.

Luxembourg has played a leading role in the establishment of the Facility. The Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade provided a seed funding of USD 2 million to support the design, structuring and establishment of DRIF, while the Ministry of Finance will contribute EUR 5 million as an anchor investment to the Facility.

The launch of DRIF reflects Luxembourg's continued commitment to multilateralism, sustainable finance and international cooperation. It also demonstrates the country's determination to support innovative approaches that strengthen the resilience of communities and ecosystems facing the impacts of climate change and environmental degradation.

Luxembourg remains committed to allocating 1 per cent of its gross national income to development cooperation and humanitarian action and to working with its multilateral partners to advance the Sustainable Development Goals.

Communiqué conjoint du ministère des Finances et du ministère des Affaires étrangères et européennes, de la Défense, de la Coopération et du Commerce extérieur