Green Development Fund for forest restoration

IKI project presents a Green Development Fund as a regional mechanism for the restoration of ecosystems and landscapes.

On 30 November 2019, international experts discussed strategies for financing the restoration of ecosystems and landscapes at the Global Landscapes Forum in Luxembourg. The IKI project “Regional Forest Landscape Restoration in Central America and The Dominican Republic (REDD-Landscape/CCAD)“ organised a panel discussion for this event titled “Central America: Developing a Region of Investment Opportunities in Landscape Restoration” with representatives of state environmental funds and private investors.

A natural solution for climate change

Central America accounts for just 0.5% of the earth’s surface. Despite this relatively small area, it is the habitat of around 8% of the world’s species and the world’s most affected tropical region in terms  of climate change. Forest loss, soil degradation through inappropriate agricultural use and monocultures are also increasing Central America’s vulnerability to the impacts of climate change.

A number ofCentral American countries and the Commission for Environment and Development (CCAD) are committed to the restoration of forest landscapes, as an effective and sustainable “natural solution” for climate change. –These countries have also pledged to restore nine million hectares of degraded landscapes. To this end, the Green Development Fund , is being jointly developed as a suitable financing mechanism.

Green Development Fund for the restoration of forest landscapes

“We would like to present the Green Development Fund as a mechanism for a region severely affected by climate change. The fund cooperates with both private financial and public institutions to finance projects for the restoration of ecosystems and landscapes throughout Central America and the Dominican Republic,” says Salvador Nieto, CCAD Executive Secretary.

During the event, participants had the opportunity to learn about the different strategies and mechanisms for financing restoration measures in the region, from the different perspectives of both public and private stakeholders, among them being: the CCAD, the Environmental Investment Fund of El Salvador (FIAES), the Foundation Environmental Bank of Costa Rica (FUNBAM), the Forestry and Climate Change Fund (FCCF) and the Luxembourg Sparkasse (Savings Bank) (BCEE). The panellists urged closer coordination of public and private financing in the land-use sector to minimise risks and increase the effectiveness of investments.

The IKI project supports the consolidation and integration of financing mechanisms and implementation and monitoring at the regional level. It also provides funding for ecosystem restoration projects in prioritised landscapes. Jointly financed by the Federal German Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) as well as the European Union, these measures will be implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in cooperation with the CCAD.