November 5, 2021
A new partnership between Norfund, CDC Group, Finnfund and New Forests aims to raise up to $500 million over the next three to five years in the fight against climate change.
Africa is home to around 17 per cent of the world’s forests, including 20 per cent of all tropical forests. These vital ecosystems are under pressure from biodiversity loss and deforestation, as the continent faces a growing wood products shortage as economies and populations grow.
Increasing the sustainability of timber production and improving forestry and landscape management practices is critical in combatting climate change and creating nature-positive outcomes in the region.
The new partnership will aim to provide much-needed capital to:
- support the development and effective management of sustainable forestry practices, including conservation of remaining natural forests.
- responsibly expand productive forest plantations, community forests and forest restoration projects across the region.
- facilitate development of nature-based climate solutions that will help prevent forest loss and preserve Africa’s natural capital.
- Accelerate the creation of green jobs, improve livelihoods, and generate sustainable and inclusive economic development in rural communities across sub-Saharan Africa.
The partnership builds on each organisation’s existing commitments to responsible forestry, bringing together CDC, Finnfund and Norfund’s expertise in investing for development in Africa, with New Forests’ track record in scaling investment and climate finance in forestry into new geographic and market segments.
New 1.2 billion USD climate investment mandate
The Norwegian government has proposed to allocate 1.2 billion USD over five years to a new climate investment fund managed by Norfund that will invest in renewable energy in developing countries with the aim of contributing to reduced greenhouse gas emissions.
A final decision on the first allocation of 240 million USD for 2022 is expected this autumn. The fund will give Norfund increased possibilities to step up our energy investments in the coming years.