Highlights

Mobilising Finance for Forests (MFF) is on a mission to protect and restore tropical forests by mobilizing private sector investments into sustainable forests and land use sectors. The programme was set up by FMO and the UK Government in 2021 to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change. 

2024 was a year of growth and progress across several dimensions. We proudly welcomed the Netherlands’ Ministry of Foreign Affairs as a new funding partner, joining forces with the UK Government. This new partnership empowers MFF to expand its reach across Africa, Asia, and Latin America, and attract even more private capital into the sector. The UK Government also pledged to further increase funding for MFF at COP 29 in Baku. 

A major milestone in 2024 was the $40 million commitment to The Reforestation Fund (TRF), a Latin America focused private equity strategy investing in projects that are dedicated to sustainable commercial tree farms across half the strategy’s footprint, and the protection and restoration of native ecosystems across the other half. This ambitious project aims to restore 133,000 hectares of natural forest and establish sustainable commercial tree farms on an additional 133,000 hectares. Through these projects, TRF aims to protect and enhance biodiversity and create economic opportunities in rural communities. As one of the key goals of MFF is to mobilize private capital at scale, TRF was a clear demonstration of how MFF can use concessional funds to be catalytic. The investment by MFF, which took on higher risk in the structure, catalyzed over $300 million of additional capital.

The addition of TRF to the MFF portfolio strategically complements our existing investment in the &Green Fund. The &Green Fund is dedicated to financing inclusive, sustainable, and deforestation-free commodity production. By supporting sustainable food supply chains, &Green works not only to mitigate deforestation but also to contribute to food security for a growing global population. Through investing in these different approaches, MFF is demonstrating the variety of ways to invest in forests and sustainable land use while also building out a diversified portfolio.

Innovation and market development were at the forefront of MFF's efforts in 2024. We deployed several Development Contributions into pioneering business models across various geographies, to support these models in becoming bankable.

• Amazonia Nativa is an agroforestry/afforestation project in Colombia with the objective to afforest degraded pasture land with a mix of native timber species and acai palms.

• Terrasos is a pioneer in the biodiversity credit space and has successfully proven a novel business model and approach to biodiversity conservation through Habitat Banks in Colombia.

• LevasFlor is a fully FSC certified Natural Forest Management company, managing 46,000 Ha of natural Miombo forest in central Mozambique. LevasFlor estimates that their forest management has resulted in a 51% reduction in the deforestation rate and 41% more carbon stored per hectare, compared to current practices on surrounding forest lands.

MFF’s Learning, Convening, and Influencing Platform (LCIP) is an important component of MFF as it works to support the mobilization of investment into the forests and sustainable land use (FSLU) sector by building investors' knowledge and capacity. In 2024, the LCIP organized or contributed to nine events and published four important knowledge products. We are seeing good evidence that other actors in the FSLU sector are using these knowledge products. For example, the ESG Guide for Forestry Investments has been used by various investors and donors to shape or improve their E&S policies and frameworks across their forestry portfolios, building further capacity. 

Technical Assistance funding was also deployed to companies in the Republic of Congo, Indonesia, and Vietnam, helping them build capacity and become more attractive prospects for investors.

As we look ahead to 2025, with COP30 being held in Brazil, home to over 60% of the Amazon rainforest, we remain optimistic and determined. MFF is dedicated to expanding its portfolio, sharing key learnings with the market, and mobilizing more capital for the preservation and restoration of tropical forests.