As a significant effort against climate change, the UK government has launched the ‘Mobilising Finance for Forests’ (MFF), a program that aims on supporting private sector investment in projects that seek to restore and protect tropical forests that are spread across Asia, Africa, and Latin America.
According to official reports, the new £150 million ICF (International Climate Finance) initiative will be led by Dutch development bank, FMO, and will use a mixed finance investment strategy to fight deforestation and other environmentally damaging land-use practices that are contributing to climate change.
Apparently, the Dutch bank will allocate up to £150 million through this program to three to five investment funds as well as direct clients that are functioning in selected tropical forest regions in Asia, Africa, and Latin America.
Over time, the investment will help curb deforestation by stimulating private sector investment growth in markets that create value from existing forests or include forest protection in agricultural production.
FMO has already made investments in a range of forestry and sustainable land use projects and businesses and is seeking to build a portfolio of carbon-negative fundings in more projects in this area.
UK Energy Minister, Anne-Marie Trevelyan, affirms that the impact of deforestation is devastating, especially on the global effort to combat climate change and on vulnerable rainforest communities. She added that the investment added recently will financially support projects on the frontline of this effort, and also give assurance to financial institutions about their investment.
Linda Broekhuizen, CEO, FMO, expressed her gratitude for entrusting FMO with the management of another International Climate finance Initiative. She said that it is exciting to partner with the UK government to ramp up growth of the forestry & sustainable land-use sectors. The program will help safeguard the planet’s precious biodiversity in line with creating green jobs and supporting efforts against climate change.