New £150m forests initiative seeks to back fund managers in Africa and beyond
The UK government is launching a new £150 million Mobilising Finance for Forests programme which is aimed at unlocking private sector investment in projects that protect and restore tropical forests across Africa, Asia and Latin America. This new International Climate Finance (ICF) initiative will be managed by FMO, the Dutch entrepreneurial development bank.
According to the Intergovernmental Panel on Climate Change (IPCC), one fifth of global greenhouse gas emissions are the result of deforestation, agriculture and other unsustainable land uses, with valuable natural resources being cleared away at a rapid pace to make way for grazing animals and to grow crops. Investing in sustainable land use could provide up to one third of global greenhouse gas mitigation required internationally by 2030 and is essential to reach the Paris Agreement ambitions.
The Mobilising Finance for Forests (MFF) programme will use a blended finance investment approach to combat deforestation and other environmentally unsustainable land use practices that are contributing to global climate change. Through MFF, FMO will allocate up to £150 million across three to five investment funds and direct clients operating in selected tropical forest regions in Africa, Asia and Latin America. A technical assistance facility will support the programme’s fund managers and direct investees post-investment, to scale proven, bankable projects.
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