Financing and the private sector

This area of work within the UN-REDD Programme is carried out both at the national level with customized direct technical advice and through the ‘global programme’.

The national-level private- sector and finance deliverables are captured in the respective country sections. This section focuses on the deliverables under the global programme.

The main milestones for 2018 included a) ensuring that at least two agribusiness firms, finance institutions or other companies made zero (net) deforestation pledges or similar commitments; and b) developing an environmental and social risk standard for at least one finance facility that contributes to REDD+.

With regards to the first milestone, the Dutch Development Bank (FMO) joined the Partnership for Forest Protection and Sustainable Agriculture (FPSA), set up by UN Environment and Rabobank to help channel US$ 1 billion in ‘deforestation- free’ loans or investments towards sustainable land-use projects. FMO signed an MoU to help make this ambitious target a reality. Another MoU was developed with Mirova Natural Capital Partners (formerly Althelia Ecosphere) and UN Environment to help scale up private finance and investment towards projects that contribute to REDD+ impact. Mirova Natural Capital is the fund manager for novel funds such as the Althelia Climate Fund 1, the Land Degradation Neutrality Fund and the AGRI3 Fund.

In addition, with regards to the second milestone, an Environmental and Social Framework that includes Key Performance Indicators was developed by Rabobank and UN Environment for the AGRI3 Fund in 2018. Mirova/Althelia was selected as Investment Advisor for this new blended finance fund set up in association with FMO and the Sustainable Trade Initiative (IDH). This fund aims to act as a vehicle to ultimately direct US$ 1 billion in deforestation-free loans to companies and projects in developing countries, thereby helping countries meet their REDD+ objectives under ‘Nationally Determined Contributions’. See the AGRI3 Brochure (including Environmental and Social Framework).

The Environmental and Social Framework aims to steer projects towards delivering meaningful and positive environmental and social impact. The fund aims to invest alongside commercial and development banks in developing countries to stimulate the transition to deforestation-free commodity production, which – if successful – helps countries meet their REDD+ and climate objectives as stipulated through NDCs.

The UN-REDD Programme has been granted formal observer status at the ongoing CORSIA negotiations on the future of the aviation market. UN-REDD has been actively contributing towards ensuring the environmental integrity of forest offsets in the future market. In parallel to these activities, the programme is exploring private-sector financing for REDD+ activities through direct investments coupled with carbon transactions compatible with Article 6.

This report is made possible through support from Denmark, Japan, Luxembourg, Norway, Spain, Switzerland and the European Union.