Project detail - Stichting SNV Nederlandse Ontwikkelingsorganisatie

Who is our customer?

Stichting SNV Nederlandse Ontwikkelingsorganisatie (“SNV”) is a Dutch global development partner, rooted in African and Asian countries with 60 years of experience and a team of approximately 1,600 people. SNV’s mission is to strengthen capacities and catalyse partnerships that transform the agri-food, energy, and water systems to enable sustainable and more equitable lives for all. SNV is part of the consortium together with FMO, WWF and Climate Fund Managers that deliver the Dutch Fund for Climate and Development (DFCD) program. Relevant to this project, SNV has been active in Laos since 1993 and strong local presence in the wider Mekong region, with offices in Laos, Cambodia and Vietnam.

What is our funding objective?

FMO is providing Repayable Development Contribution (RDC) of USD 2.0mln from the Mobilising Finance for Forests program (MFF). The RDC will be provided to SNV, with the majority of funding to be on-lent to SilviCarbon Agroforestry Sole Co Ltd (“SCALA”). SCALA is an FSC-certified brownfield forestry company located in the southeast of Laos. Its plantation was originally established in 2010, and it currently has a total land bank of 8,550 ha under 50-year concessions. MFF is co-funding the development phase of SCALA’s expansion project alongside the DFCD Origination Facility, which is also jointly managed by SNV. The primary use of funds from the RDC will be (i) updating the existing carbon project to move to the latest methodology, with the addition of various quality/impact label certifications to improve overall impact and value of the carbon asset. (ii) land preparation, including unexploded ordinance (UXO) land clearance and planting of an additional 600ha of eucalyptus over two years.

Why do we fund this investment?

Funding this development project has the potential to create a high-impact, bankable opportunity for future investment and scaling. SCALA’s current and future business models is well-aligned with FMO forestry strategy and impact objectives (climate mitigation, biodiversity and livelihoods), as well as with the MFF portfolio diversification objectives to build pipeline in SE Asia. The project is a partnership between the MFF and DFCD Origination Facility programs, representing a strong case of FMO’s ability to effectively leverage complementary funding sources for Market Creation activity, in line with FMO’s Strategy 2030. FMO’s funding has high additionality, given lack of funding for early-stage forestry investments in LDCs.