On COP26’s Nature and Land Use day, we announce the first investment of the Mobilising Finance for Forest Fund (MFF) in the Andgreen Fund (&Green). The investment consists of two components: a USD 31.5mln investment facility and USD 1.75mln development capital facility. Mobilising Finance for Forests is as a blended finance investment program funded by the UK government and managed by FMO to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change.
&Green invests in commercial projects in agricultural production value chains to protect and restore tropical forests and peatlands. The aim is to make agriculture more sustainable and inclusive – involving local communities, producers, financiers, supply chain companies, local and national government and civil society. Main focus countries are Brazil, Colombia, Indonesia, Ecuador, Peru, Gabon, Liberia and the Congo Basin.
Rosalind Campion, BEIS Director for International Energy and Climate Finance, said: "We welcome MFF's first investment in &Green. &Green’s strategy is well aligned with the UK's objective of increasing private sector investment at scale in business models that incorporate forest protection and restoration into sustainable forms of agricultural production in tropical forest regions. We see this investment is an example of how the UK is using its climate finance to reduce global deforestation, create green jobs and support the communities that rely on forests for their livelihoods."
Nanno Kleiterp, Chairperson of the &Green Fund Board of Directors, added: “We are excited about the MFF investment. &Green is working to sustainably transform challenging supply chains like soy, palm, oil, forestry and cattle to be deforestation free. MFF’s support will allow us to further expand our activities, and build up a portfolio that demonstrates that the production of these commodities while protecting the forest is possible and can generate commercially viable financial returns for investors, at scale.”
Huib-Jan de Ruijter, Chief Investment Officer of FMO, said: “High risk, long-tenor capital for forestry and sustainable agriculture is scarce, but very much needed to reach the Sustainable Development Goals. The investment in &Green on behalf of the UK government aims to change the mindsets of agriculture companies and investors, de-risking the sector and showing that sustainable forms of agriculture, forestry and land use can go hand in hand to help combat deforestation and other environmentally unsuitable land use practises.’’
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. Through MFF, FMO will allocate up to £150 million in selected tropical forest regions in Africa, Asia, and Latin America. The programme’s investments will, over time, contribute to a reduction in deforestation rates by stimulating the growth of private sector investment in markets that create value from standing forests and incorporate forest protection into sustainable agricultural practices.
&Green is incorporated as a Dutch Stichting and was developed under the leadership of IDH in close collaboration with Norway’s International Climate and Forests Initiative (NICFI). It is a blended finance debt fund investing in commercial projects that can demonstrate decoupling of commodity production from deforestation, while being socially inclusive. &Green is focused on tropical forest jurisdictions with progressive forest protection strategies and targets in place. It targets commodities that are currently driving deforestation, such as palm oil, soy, beef, forestry (including rubber) and others. Current contributors to the fund include the Government of Norway, through NICFI, Unilever, the British-Dutch consumer goods company, the Global Environment Facility (GEF), with the UN Environment Programme acting as its implementing agency, and a private re-insurance company. Dutch advisory firm SAIL Ventures acts as the fund’s investment advisor. For more information, please visit: www.andgreen.fund.