Convergence has awarded a proof-of-concept grant under the Indo-Pacific NGO Blended Finance Accelerator to Xpand Foundation, Pollination and Foundation Rai Matak to support the design and structuring of Rai Matak (Green Lands), a USD 20-25 million blended finance platform aimed at scaling community-led reforestation and generating high-quality carbon credits in Timor-Leste. The platform seeks to mobilize catalytic and commercial capital to finance large-scale restoration of degraded landscapes while creating sustainable income streams for rural communities through carbon markets.
Timor-Leste faces significant environmental and economic challenges, including widespread deforestation, land degradation, and limited livelihood opportunities in rural areas. Climate change is exacerbating these vulnerabilities, increasing pressure on natural resources and undermining agricultural productivity. At the same time, global demand for high-quality, nature-based carbon credits is growing, creating an opportunity to channel climate finance into community-led restoration efforts. However, early-stage projects often face barriers to accessing capital due to high upfront costs, long project timelines, and perceived risks around verification, pricing, and market access.
Rai Matak Global aims to address these challenges by developing a blended finance model that links reforestation activities with forward carbon offtake agreements, enabling upfront financing for project development while securing long-term revenue streams. The platform is designed to ensure that a significant share of revenues flows directly to local communities, supporting inclusive economic development while restoring ecosystems. The model will integrate robust monitoring, reporting, and verification (MRV) systems to ensure environmental integrity and credibility in carbon markets.
With a strong focus on community ownership, the platform builds on Xpand Foundation’s long-standing presence in Timor-Leste and its experience working with local stakeholders to implement nature-based solutions. The initiative aims to create livelihood opportunities for 20,000 smallholder farmers, plant 10 million trees, and generate 15–25 million tonnes of verified CO₂ removals over the life of the program. Over time, the platform seeks to demonstrate a viable model for channeling climate finance into community-led projects in frontier markets.
Design question and learning potential from the market: How can a blended finance platform be structured to mobilize upfront capital for community-led reforestation while ensuring credible carbon revenues, strong community ownership, and long-term financial sustainability in a frontier market context?
Xpand Foundation’s approach responds to the complexities of carbon markets and frontier environments by combining blended finance with forward offtake agreements and strong local partnerships. The model aims to de-risk early-stage project development while aligning incentives across investors, buyers, and communities. By embedding community participation and benefit-sharing mechanisms into the platform design, the initiative seeks to ensure that climate finance translates into equitable and lasting impact.
Accelerator’s support will enable Xpand Foundation to advance key design-stage activities, including financial and legal structuring, carbon methodology validation, development of MRV systems, stakeholder engagement, and investor outreach. These activities will lay the foundation for scaling the platform and positioning it to attract investment while delivering measurable climate and livelihood outcomes.
