Sustainable natural forest management is, in the main, not a bankable activity in the tropics, particularly for smaller actors. To address this financing shortfall, FCCF developed a range of specific financial instruments including:Long-term equity and quasi equity finance – with the Fund always acting as a co-investor with local partners – to create or strengthen entities active in the management of secondary and degraded forests and the value chains derived from these forests.
Long-term forest management loans, reflecting the cash-flows and timelines required to invest in the restoration of degraded and secondary forests. These loans can be combined with debt instruments to advance payments to forest owners to increase the liquidity when needs are urgent.
Investments in machinery, equipment, and infrastructure to address shortfalls in value chains, in view of building inclusive and lasting market connections for wood products derived from secondary and degraded forests.
Short-term working capital debt to finance harvesting and commercialisation cycles.
The Fund is always interested in collaborating with local and international financiers to broaden the actors interested in sustainable natural forest management.