The Fund

MISSION

&Green invests in commercial projects in agricultural production value chains in order to protect and restore tropical forests and peatlands and make agriculture more sustainable and inclusive – involving local communities, producers, financiers, supply chain companies, local and national government and civil society.

GOAL

The Fund’s goal is to prove that financing inclusive, sustainable and deforestation-free commodity production can be commercially viable and replicable, thus strengthening the case for a rural development paradigm that protects valuable forests and peatlands and supports high-productivity agriculture.

VISION

The Fund’s vision is that tropical forests and peatlands are protected and restored, smallholder livelihoods are improved and production is increased.

The Fund

MISSION

&Green invests in commercial projects in agricultural production value chains in order to protect and restore tropical forests and peatlands and make agriculture more sustainable and inclusive – involving local communities, producers, financiers, supply chain companies, local and national government and civil society.

GOAL

The Fund’s goal is to prove that financing inclusive, sustainable and deforestation-free commodity production can be commercially viable and replicable, thus strengthening the case for a rural development paradigm that protects valuable forests and peatlands and supports high-productivity agriculture.

VISION

The Fund’s vision is that tropical forests and peatlands are protected and restored, smallholder livelihoods are improved and production is increased.

Investment philosophy

The current expansion-led agricultural production system used in tropical forest countries results in ever-increasing rates of deforestation, forest loss and greenhouse gas emissions – significantly contributing to climate change.

&Green addresses these problems by aiming to close the market gap between the current lack of a short-term business case for forest and peatland protection and the possible long-term solutions with the Fund’s:

  • purpose-built capital for the sustainable intensification of agricultural production systems; and
  • business models that reduce deforestation.

The Fund’s involvement mitigates the credit and environmental risk (of its projects and investees) for commercial investors, commodity players and consumer goods companies through strong financial and environmental instruments and covenants and by leveraging private sector investment.

&Green adopts a landscape approach to conservation of the related forest or peatlands. The Fund’s investments support its investee companies in developing and implementing a plan to protect the wider landscape around the area of production by including other stakeholders in the landscape.

By limiting &Green’s investments to jurisdictions with progressive forest and/or peat protection strategies, the Fund ensures reinforcement of public policy signals through private sector investment.

 

Impact Targets

Investments catalyzed by &Green

Hectares of tropical forest protected, conserved or restored

Households benefitting from the Fund through enhanced yields and incomes, creation of jobs and/or other income-generating opportunities

&Green’s targets are aligned with the

Sustainable Development Goals

Theory of Change

The &Green Theory of Change describes the pathways along which the Fund aims to introduce its interventions and ultimately achieve its impacts. The Theory of Change identifies five distinct pathways:

  1. The first pathway is to compensate mainstream financial institutions for some of the additional perceived risk of financing sustainable production and the improvement of smallholder yields. This should lead to increased capital inflows for responsible producers, reduced deforestation, and testing of new financial structures and credit facilities that are replicable, scalable and demonstrate the bankability of the smallholder sector.
  2. The second pathway is to compensate commodity producers for some of the opportunity costs associated with forest conservation until regulatory regimes fully price the externalities provided by natural forests and level the playing field for sustainable, deforestation free agriculture.
  3. The third is to encourage the intensification of agricultural production without any increase in deforestation in order to demonstrate to regulators the potential for effective regulation to achieve the multiple objectives of sustaining economic growth, poverty reduction and forest conservation.
  4. The fourth is to provide risk capital to new commodity types or production systems that have the potential to displace products with a higher environmental footprint.
  5. The fifth pathway is to reinforce public policy signals and encourage improved regulation by providing finance only in approved jurisdictions and engaging large consumer goods companies in a discussion about which public policies would allow them to source deforestation-free commodities.

Jurisdictional eligibility approach

&Green intends to catalyze investment into jurisdictions where local authorities, are also committed to the reduction in deforestation and are actively taking steps to work with the private sector, communities and civil society to protect forest and peatlands.

&Green is only able to invest when the country/region/province in which the investment is located meets the Jurisdictional Eligibility Criteria of the Fund.