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Fund for deforestation-free agriculture is now operational

The, announced during the 2017 World Economic Forum, is now operational. The fund is targeting agricultural production in countries and jurisdictions that implement strategies to protect forests and reduce related greenhouse gas emissions, including Indonesia.

During this year’s World Economic Forum in Davos, the Government of Norway, the Consumer Goods Forum and the Global Environment Facility announced this new fund, aiming to “green agricultural investments”.

The fund has been set up by IDH – Sustainable Trade Initiative and is now an independent legal entity.

Agriculture is one of the biggest drivers of deforestation

“The future of the planet depends on our common ability to both protect and restore forests at unprecedented scale, while simultaneously increasing agricultural production to meet growing global needs”, said Norway’s Prime Minister Erna Solberg during the announcement in Davos.

Aiming for large scale, long lasting impact

Branded the, the fund aims to trigger private sector investment into agricultural productivity, whilst protecting millions of hectares of tropical forests, peatlands and biodiversity by 2020.  

The aims to redirect financial flows towards intensified land use, combining forest conservation with increased food production and economic growth. One of the ambitions of the fund is to contribute to systemic change that will have large scale, long lasting impact.

By investing up to $400 million by 2020, the will provide subordinated credit, under flexible terms. By crowding-in co-investors, the maximizes the amount of private capital available.

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