Forestry and Climate Change Fund (FCCF)


Organizational profile: 
The FCCF is a pioneering impact fund aiming to demonstrate that sustainable forestry within secondary & degraded tropical forests generates economic, ecological and social value and contributes to healthy landscapes, climate change mitigation & adaptation and local economic development. The Fund enables access to responsible financing sources for local actors and supports the development of viable enterprises. The Fund also constitutes an investment opportunity into innovative climate finance for different types of investors. 
In order to realize this vision, FCCF: 

  • balances ecological and social impact with attractive long-term financial returns; 
  • creates and disseminates knowledge on business models adapted to the specifics of secondary and degraded tropical forests; 
  • forges lasting alliances with local communities and locally rooted entities. This supports the long-term vision by which forests find their place within economically and ecologically functioning landscapes; 
  • contributes internationally and in Luxembourg to growing interest in climate financing; 
  • remembers the global significance of SDFs and seeks to expand the approach beyond Central America in the long term. 

Two expected output levels are: 

  • Close to 14 million tons of CO2 sequestered in secondary and degraded forests in which they invest and; 
  • The creation of 3,000 jobs in the value chains derived from timber production and transformation. 

Financing Instrument: Loans, Equity 
Project scale: The fund targets €15-20 million, and the technical assistance facility targets €2 million, which grants fund development and capacity building for local management structures. The minimum investment or loan size per project is US$1M over the duration of project. 
Recipient countries regions/country groups: Central America 
Recipient categories: Businesses 
Eligibility Criteria: 
FCCF focuses its investments on: 

  1. Community-led management of secondary and degraded forests (SDF); 
  2. Financing of management systems for smaller land-owners within a mosaic of SDF and agriculture; 
  3. Investment in larger entities and land-owners where such investments represent a strategic interest in establishing forestry for SDF. 

Application guidelines: 
The Fund is entering an increasingly mature phase. The investment period is set to end in October 2022 and the Fund is now preparing to disburse its eighth investment, with further promising deals in the pipeline for early 2022.  
Please find updates on FCCF’s official website and email for more information. 

Publication Date
Sunday, 27 March 2022
Applicable location
Sustainable land use
Forest conservation and management
Forest landscape restoration
Climate change
Financing opportunities