A new facility with an initial €25 million (£22m) of capital aimed at boosting the contribution of private finance to forest restoration has been launched.
The Restoration Seed Capital Facility seeks to help private investment fund managers set up dedicated investment funds and forest restoration projects in developing countries, contributing to their efforts to meet the objectives of the Sustainable Development Goals and the Rio Conventions, in particular the Paris climate agreement and Land Degradation Neutrality targets.
The Facility has been launched by the UN Environment Programme (UNEP), the Frankfurt School of Finance and Management, the Government of Germany and the Grand-Duchy of Luxembourg, helping to unlock the potential for climate change adaptation and mitigation, conservation of biodiversity and provision of sustainable livelihoods.
It builds on the successes of the Bonn Challenge and aims to scale up forest and landscape restoration significantly during the UN Decade on Ecosystem Restoration 2021-2030.
The UNEP suggests nature-based solutions such as forest landscape restoration can reverse the affects of deforestation and degradation and regain the ecological, social, climatic and economic benefits of forests.
Carole Dieschbourg, Minister for the Environment, Climate and Sustainable Development, Government of Luxembourg said: “We cannot address the climate emergency without investing in the planet’s natural capital. There is no mitigation policy, no adaptation policy and no liveable future, if we do not begin managing our landscapes, restoring forests and moving towards deforestation free and sustainable agriculture within a framework of strong partnership of science, business and finance.
“This facility provides crucial funding to mobilise private impact finance in forest landscape restoration to safeguard people’s livelihood, reduce vulnerabilities and preserve our ecosystems.”