Forest Landscape Restoration - FS Impact Finance

Forest Landscape Restoration

Restoration Seed Capital Facility

Building on the success of SCAF, the Restoration Seed Capital Facility is an adaptation of the same model to the forest landscape restoration (FLR) and land-use space. The overriding objective of RSCF is to reverse the loss and degradation of forests, protect biodiversity, and contribute to sustainable livelihoods, operating through the private sector. RSCF helps set up new investment funds, builds a pipeline of investable assets in the sector, and contributes to projects reaching financial close, thus stimulating private investment in the FLR space.

RSCF was incepted in 2020 and is jointly implemented with the United Nations Environment Programme. Funding is provided by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the Luxembourg Ministry of the Environment, Climate and Sustainable Development.

Problem

While the funding requirements of early-stage FLR projects are comparatively modest, they carry significant risk with the potential for high broken deal costs, resulting in a major financing gap in earlier-stage investment. The consequence is a limited pipeline of investment-ready projects and assets.

Solution

The RSCF partners with fund managers in the FLR space to de-risk earlier stage investment in FLR assets. By doing so, the RSCF lowers the risk in the early stages of development and increases the amount of capital focused on development resulting in an increased pipeline of new bankable investment opportunities for private investors.

Impact

To date, RSCF is working with six partners and has mobilized USD 127 million in private capital, thereby protecting and/or restoring 373,000 ha of natural habitat. The facility tackles several SDGs, mainly SDG 12 (Responsible Consumption and Production), 13 (Climate Action), and 15 (Life on Land).

million t CO2 sequestered and avoided by co-funded projects

mn USD in private capital mobilized

ha of natural habitat protected/restored

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