Mobilising Finance for Forests
Mobilising Finance for Forests (MFF) was established in 2021 by the United Kingdom government and FMO as a blended finance investment program to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change.
MFF will offer long term financing up to 15 years to a mix of fund and direct investments. Unlocking private sector investment in projects that protect and restore tropical forests across Africa, Asia and Latin America, MFF will target projects in two categories:
- Projects that increase the value of standing forests to lower the incentive to cut down forests (e.g. harvesting non-timber forest products such as nuts, seeds or native forest coffee, carbon offsetting schemes, eco-tourism, conservation projects)
- Projects that integrate forest protection and restoration into agricultural production to reduce deforestation pressure (e.g soy, cattle, palm oil, cocoa, timber)
Financing Instrument: Technical Assistance, Equity, Loans
Through MFF, FMO has been appointed by the UK government to invest up to £150 million across a mix of investment funds and direct investments in selected tropical forest regions in Africa, Asia and Latin America.
MFF will offer long term financing up to 15 years to a mix of fund and direct investments. Up to 20% of the funding can be used for early-stage project development.
Fund investments in 3 to 5 Funds (70-80% of the program)
- Investment funds targeting sustainable investments in the forestry and other land-use sectors
- Equity or debt investments
Direct investments (20-30% of the program)
- Minority shares in equity investments
- Loans of up to (the equivalent of) € 10 million
A Technical Assistance Facility (TAF) will provide the program’s fund managers and direct investees with post-investment advisory support to scale proven, bankable projects.
Recipient countries regions/country groups: countries in Africa, South-East Asia and Latin America, that have important tropical forests
Recipient categories: businesses
Eligibility Criteria: N/A
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