Land-based finance enables governments to fund investment in sustainable urban development efficiently and equitably. It allows to recover land value increases resulting from public infrastructure provision and changes in land-use regulations. Value uplifts can be substantial – often exceeding the cost of infrastructure provision – and can pay for clean transportation infrastructure, parks, affordable housing, etc.

The Programme investigates how land-based finance is used around the world to help national and local governments adopt new land-based finance policies and improve existing ones. In close cooperation with the Lincoln Institute of Land Policy and with the support of the German Corporation for International Cooperation (GIZ), the OECD produced a Global Compendium of Land Value Capture Policies covering 60 countries around the globe, with an internationally comparable taxonomy of land-based finance policies. The Programme has also advised the Indonesian government on how to implement land-based finance tools to fund water infrastructure. It continues to support governments and private sector stakeholders and fosters international policy dialogue on the issue – for example on how land-based finance can be used to fund green infrastructure to protect cities against climate hazards.