The fund was launched in partnership with tropical forest countries, UN Environment (UNEP), the Global Environment Facility (GEF) and IDH Sustainable Trade Initiative, with strong support from major food companies and civil society organizations.
The fund aims to protect over five million hectares of forests and peatlands by 2020.
Sustainable and innovative agriculture
Erna Solberg, Prime Minister of Norway, announced the fund in Davos: “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. Through this fund, we will work with forest governments, the private sector, and civil society to make this happen in innovative ways.”
The fund will be launched with an initial committed capital of 100 million USD from the Government of Norway, aiming to reach 400 million USD by 2020.
One of the aims of the fund is to trigger private sector investment into agricultural productivity that also protects forests, peatlands and biodiversity. The fund will provide an incentive for tropical forest governments by offering investments to countries and jurisdictions that implement strategies to protect forests and reduce related greenhouse gas emissions.
Norway has developed the fund in cooperation with IDH and partners in the Tropical Forest Alliance 2020, a global public-private partnership to drive action towards deforestation-free supply chains, hosted at the World Economic Forum.
Fund to be set up by IDH
The fund will be formally set up and incorporated by IDH later this year. It will then operate as an independent legal entity.