Upscaling of private FLR investments in Latin America

Latin American countries participating in the Bonn Challenge have committed themselves to ambitious FLR goals.. Public funds for FLR are limited, so private investment is needed for successful implementation. The project adressed barriers through pre- and post-investment activities. The project worked 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 developed 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 were 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). The project was part of the IKI Corona Response Package.

Project data

Countries: El Salvador, Paraguay, Peru
IKI funding: 2,835,787.43 €
Duration: 03/2019 till 02/2024
Status: completed
Implementing organisation: Unique land use GmbH
Political Partner: Ministry of Agricultural Development and Irrigation, MIDAGRI - Peru

Ministry of Agriculture and Irrigation (MINAGRI) - Peru*

Ministry of Environment and Natural Resources (MARN) - El Salvador

Technical Planning Secretariat of the Government of Paraguay
Implementing Partner: Finance in Motion GmbH
Online: https://www.unique-landuse.de/en/

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State of implementation/results

Project completed.
El Salvador:
- A Forest Landscape Restoration (FLR) impact monitoring framework, including monitoring of deforestation and CO2 impacts has been created.
- A digital tool for financial intermediaries for spatially explicit automated querying of deforestation for smallholder structures has been tested and finalized.
- The developed monitoring tool has been presented for the first time in San Salvador at the event "FORO REGIONAL - Inversión Privada en Restauración de Ecosistemas."
- The project reached approximately 60 coffee farmers in El Salvador with the training course "Resilient Coffee Businesses: From Vision to Practice" in 2022 and supported them on their way to sustainable coffee agroforestry as a FLR business model.
- The eco-acoustic method (biodiversity monitoring) in shade coffee growing regions in cooperation with financial intermediaries has been piloted. The biodiversity monitoring approach was presented at the Global Landscape Forum Luxembourg in March 2023.
Peru:
- A FLR project in Cajamarca - Timber market study, forest mapping, investor due diligence has been completed.
- Good Practice Guide for " Private Sector Investments in Forest Landscape Restoration in Community Lands" has been published.
Paraguay:
- A FLR cooperation platform has been established.
- Furthermore a brochure on Strengthening Forestry Capacities has been published.
- A video and brochure on seed collection and native seedling production in Paraguay has been produced.
- A pilot study on ecoacoustics Evaluate ecoacoustic data collected has been conducted and results related to impact in FLR projects including completion of a technical report has been compiled.
- Technical assistance to indigenous smallholder farmers, tree nurseries and service providers in the forestry sector has been provided to strengthen FLR business models and promote the production of indigenous tree species.
- A Competence Center for rural employment and training has been established by conducting trainings on entrepreneurship and environmental and forestry issues.