Forest Landscape Restoration

Restoration Seed Capital Facility

Sustainable Development Goals – Responsible Consumption And Production
Sustainable Development Goals – Climate Action
Sustainable Development Goals – Life On Land
Sustainable Development Goals – Responsible Consumption And Production
Sustainable Development Goals – Climate Action
Sustainable Development Goals – Life On Land

Building on the success of SCAF, the Restoration Seed Capital Facility is an adaptation of the same model to the forest landscape restoration (FLR) and land-use space. The overriding objective of RSCF is to reverse the loss and degradation of forests, protect biodiversity, and contribute to sustainable livelihoods, operating through the private sector. RSCF helps set up new investment funds, builds a pipeline of investable assets in the sector, and contributes to projects reaching financial close, thus stimulating private investment in the FLR space.

RSCF was incepted in 2020 and is jointly implemented with the United Nations Environment Programme. Funding is provided by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) and the Luxembourg Ministry of the Environment, Climate and Sustainable Development.

Problem

While the funding requirements of early-stage FLR projects are comparatively modest, they carry significant risk with the potential for high broken deal costs, resulting in a major financing gap in earlier-stage investment. The consequence is a limited pipeline of investment-ready projects and assets.

Solution

The RSCF partners with fund managers in the FLR space to de-risk earlier stage investment in FLR assets. By doing so, the RSCF lowers the risk in the early stages of development and increases the amount of capital focused on development resulting in an increased pipeline of new bankable investment opportunities for private investors.

Impact

To date, RSCF is working with six partners and has mobilized USD 77 million in private capital, thereby protecting and/or restoring 8,900 ha of natural habitat. The facility tackles several SDGs, mainly SDG 12 (Responsible Consumption and Production), 13 (Climate Action), and 15 (Life on Land).

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million tCO2 sequestered and avoided by co-funded projects
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mn USD in private capital mobilized
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ha of natural habitat protected/restored

Case Studies & Blogs

RSCF support for the Honduras Coffee Project

Ecotierra has been a partner of the Restoration Seed Capital Facility since August 2021 and is the advisor to the Urapi Sustainable Land Use Fund.

deforested area with stacked tree trunks

Forests as the panacea?

When following the media, one could conclude forests are the panacea against climate change and the biodiversity crisis. But can we – from a market perspective – afford to protect all the forests?

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Get in touch!

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Derek CampbellFS Finance Derek Campbell

Derek Campbell

Senior Investment Manager

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Thomas Richter

Investment Manager

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