Upscaling of private FLR investments in Latin America
As of: January 2020
Objective and activities
The project goal is to help countries meet their FLR and NDCs targets by addressing the described barriers through pre- and post-investment activities. The project will work with investors, such as development banks, impact funds and financial intermediaries (e.g. banks, financial cooperatives), which are potential sources for the much needed private capital. The project will develop an open-access FLR impact framework (including methodologies, processes and tools) for cost effectively and transparently monitoring the environmental and social impacts, based on the requirements of investors. The tools will be tested and applied on developed FLR lending products, an investment project pipeline and pilot FLR investments in Peru, El Salvador and Paraguay (e.g. shade coffee, silvo-pastoral systems and sustainable forestry). Furthermore, a Green Climate Fund (GCF) proposal will be developed for the most successful pilot in coordination with the partner country.
State of implementation/results
The project was presented to the public at the annual 20x20 Conference in Buenos Aires (June 2019)
- The private sector potential of FLR was presented during the 20x20 Landscape Restoration Investment Encounter Week in Chile (August 2019)
- 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.
- Cooperation with potential FLR investors such as development banks, impact funds and intermediary institutions (banks, cooperatives).
- Development of an "open-source" FLR Impact Framework (methods + instruments), which enables cost-effective monitoring and transparent reporting on the environmental and social impacts of FLR projects based on investor requirements.
- The framework will be tested and applied to appropriate 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 proposal for the Green Climate Fund (GCF) will be developed for the pilot project in coordination with the partner country.