Scaling Forest Investment: Models and Challenges Discussed at Marketplace
Experts emphasize the need for viable business models to enhance forest investment, crucial for achieving climate goals. Current funding levels fall significantly short of the estimated $150-200 billion required annually by 2030.
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The Forest Investments Marketplace, opened on March 31 under the UN-REDD Programme in collaboration with the Vietnamese Government, aims to address a significant underfunding in forest investment, estimated at $15-20 billion annually against a need of $150-200 billion by 2030. Việt Nam has maintained forest cover above 42% and generates approximately $150 million annually through its Payment for Forest Environmental Services policy.
A new emissions reduction programme has already yielded $56.5 million from 11.3 million tonnes of carbon credits. However, challenges remain, including a financing gap and the need for innovative financial mechanisms, particularly for smaller enterprises.
Experts stress that the conversation must shift toward the broader economic viability of forests, emphasizing the importance of integrating local communities and smallholders into sustainable forest management. Failure to bridge the gap between capital mobilization and effective distribution may hinder long-term forest conservation efforts.
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