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Unlocking Forest Finance - Mobilisation of private sector capital to reduce deforestation through Public/Private Partnerships for forests and rural livelihoods.

As of: September 2021

The Project aims to increase capacity among policymakers in Amazonia to mobilise large-scale public/private funding through innovative financing mechanisms that enable the conservation and sustainable use of forests as natural capital (I), adaptation to climate change (II) & climate friendly economic development (III). Focussing on Amazonia, this project will increase the capacity among policymakers in three case study regions to generate public/private funding to halt deforestation, reform agriculture and improve rural livelihoods. It will design large-scale innovative financing mechanisms (IFM) at the jurisdictional scale of a state or municipality, to fund the transition from business-as-usual (BAU) to sustainable ecosystem management (SEM), working with the financial sector and sub-national governments.

State of implementation/results

Project in implementation
  • A portfolio of investments has been formulated by the local partners in all three pilot regions. These investments will sustainably increase production in agricultural supply chains while supporting conservation and sustainable livelihoods. Project partners will determine which investments remain within the portfolio by assessing their environmental, social, and economic benefits/costs, against criteria such as return on investment, climate risks, impacts on biodiversity, employment, etc
  • For each of the 3 portfolios, the UFF project team has gathered economic data and is finalising estimates of the cost of investing in the transition to sustainable development, as well as potential returns. UFF has held regular meetings with our advisory group, receiving strategic advice from 3 international financial institutions, 2 private banks, potential insurance/guarantee providers and specialist investment consultants
  • The project team has interviewed numerous local and international stakeholders, while using the results to develop a suitable preliminary financing mechanism
  • GCP presented the UFF project as part of the Global Landscapes Forum of the COP 21 in December 2015, with the involvement of EIB, Finance in Motion, Althelia, Credit Suisse und UNCCD
  • Joint development of a loan mechanism with AGROBANCO in Peru to incentivize agricultural loans failed due to the withdrawal of AGROBANCO
  • In 2018, the project engaged with other investors to present the green credit line concept developed with AGROBANCO to get their input and interest in funding the pilot. These investors joined the second breakfast session in Q1 2019 and clear roles were be defined and how their business strategy aligns with the objectives of the project.
  • Creation of the knowledge platform with a tool-kit for potential replications. --- The project published the report “Conquering the Valley of Death“ to inform on the role of finance in stimulating sustainable agricultural production. (…)

Further Links

Project data

Brazil, Peru

Implementing organisation:
Global Canopy Programme (GCP)

Political partner(s):
  • Acre State Government- Brazil
  • Government of Mato Grosso - Brazil
  • San Martin Regional Government (GORESAM) - Peru

Implementing partner(s):
  • Amazon Environmental Research Institute - Brazil
  • Climate Bonds Initiative (CBI)
  • Development and Research Centre of the Selva Alta (CEDISA) - Peru
  • Helmholtz-Zentrum für Umweltforschung GmbH (UFZ)
  • International Institute for Applied Systems Analysis (IIASA)

BMU grant:
4.109.162,76 €

04/2013  till  03/2019

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