Forest Landscape Conservation and Restoration

CPIC’s Forest Landscape Conservation and Restoration Working Group seeks to develop investment models for forest landscapes that aggregate multiple revenue streams including sustainable timber harvests, hunting leases, carbon credits and usage fees. Through capturing cash flows from the sustainable use of forest landscapes, the Working Group seeks to attract private investment capital to create both positive conservation and financial outcomes.

The working group is led by the European Investment Bank (EIB). 

Forest Resilience Bond

The Forest Resilience Bond (FRB) provides a means to engage private sector investment to fund ecological restoration activities that reduce fire risk and deliver environmental and social co-benefits. The financial model innovates through the use of investor capital to fund restoration quickly and at scale, and a cost-sharing approach among beneficiaries. As such, the FRB model encourages a collaborative systems-level response to forest health challenges that makes use of funds, experience, and expertise from a range of public and private players.

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Forest land acquisition for sustainable land management

Investments in sustainable forestry typically aim to conserve and sustainably manage existing forest tracts or restore degraded land. Cashflows come from sustainable harvesting, payment for ecosystem services, land appreciation, land preservation tax credits, the sale of land rights, and other fees, such as hunting or fishing. This model is innovative because of the institutionalization of the investment vehicles: it provides a viable investment strategy for commercial institutional investors, including pensions and insurance companies.

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Sustainable Timber Hub for community forestry

Indonesia has one of the highest rates of primary forest loss in the tropics, with small-scale agriculture accounting for one fifth of total deforestation. At the same time, smallholder farming and community forestry in Indonesia plays an important role in achieving sustainable forest management as well as reducing poverty in rural areas. The Nb project sells timber sourced from smallholder forestry plots and community collectives. It provides a fair price to primary producers and helps them to produce timber sustainably, in accordance with Forest Stewardship Council (FSC) guidelines.

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Reducing deforestation through a smallholder forestry Special Purpose Vehicle

In Africa, 65% of land has been affected by degradation and 3 million hectares of forest are lost annually. Wood consumption is the leading cause of forest degradation, driven by urbanization and increasing local demand for wood products. Smallholder forestry presents a critical opportunity for meeting the growing demand for domestic wood consumption and mitigating the threat posed by deforestation and ecosystem degradation. Komaza has developed plans for a Smallholder Forestry Vehicle (SFV), which seeks to reduce the overall cost of capital by separating the risks of the longest, least risky growth stage from the risks of the establishment and harvesting stages.

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