This document presents an analytical framework and tool for how to use incentive and market-based mechanisms (IMBMs) to promote investments in sustainable land management practices (SLMPs). It describes land degradation and its drivers and how economic incentives together with appropriate policies can offer solutions to the problem. The paper presents a series of mechanisms that provide incentives for land users to invest in SLMPs. It also presents a methodology for evaluating the appropriateness or feasibility of using a particular economic mechanism to prevent land degradation and promote the adoption of sustainable land management (SLM) in a given country. It looks at some of the existing mechanisms and the requirements of each.