The Forestry and Climate Change Fund (FCCF) was launched in October 2017 with the objective of investing in pioneering business models for natural capital restoration in secondary and degraded forests in Central America and the Caribbean.
The FCCF initiative presents several useful insights for institutions and organizations looking to create or invest in blended finance vehicles focused on the forestry sector:
- Launching a Technical Assistance Programme (TAP) prior to the fund can develop investment readiness of the pipeline and increase likelihood of success for both the fund and investees.
- Longer term investments are beneficial to investors in the forestry space, as benefits may be perceived after several years into deployment.
- TAP resources should be prioritized to effectively engage with local communities and tailor appropriate investment solutions to local settings.
- Institutional investors seek both innovation and familiarity, however as track records are established, concessionality can and should be reduced within a blended structure.