Upscaling of private FLR investments in Latin America
As of: November 2020
Latin American countries participating in the Bonn Challenge have committed themselves to ambitious FLR goals, which make an important contribution to the achievement of their NDCs. Public funds for FLR are limited, so private investment is needed for successful implementation and the project works directly with potential investors such as development banks, funds and intermediary institutions to this end. The project develops an FLR Impact Framework with methods and tools based on the open source approach, enabling monitoring and reporting on the environmental and social impacts of FLR projects. This framework is tested and applied on appropriate credit products as well as on a project pipeline and exemplary investments in the partner countries. A proposal for the Green Climate Fund for the most promising pilot project is also developed in cooperation with the partner country. The project is part of the IKI Corona Response Package.
State of implementation/results
- A public-private FLR alliance for Green Recovery will be established in Paraguay, within the framework of the Corona Response Packege. In partnership with the FLR alliance, a center of excellence will be established with the aim to institutionalize and professionalise rural employment in the forest sector. In addition, a job market networking platform will be developed, to link graduates with private companies.
- The project supports countries in Latin America in achieving their FLR and NDC goals by addressing barriers to private investment through pre- and post-investment activities (project website: www.flila.org)
- Since 2019 UNIQUE is an active member and implementation partner of the 20x20 Initiative (initiative20x20.org)
- The project was presented to a broad public at the 20x20 Conference in Buenos Aires in June 2019.
- Cooperation with potential FLR investors such as development banks, impact funds and intermediary institutions (banks, cooperatives)
- Development of a FLR Impact Framework (methods + instruments), which enables cost-effective monitoring and transparent reporting of environmental and social impacts of FLR projects based on the requirements of investors.
- The framework will be tested and applied to relevant credit products (e.g. for sustainable coffee production, or silvo-pastoral systems), a project pipeline and pilot investments in Peru, El Salvador and Paraguay.
- A financing proposal for the Green Climate Fund (GCF) is being developed in coordination with one of the partner countries.