The Tropical Landscape Finance Facility is designed to support that process. It is a partnership between UNEP, the Indonesian Ministry of Environments and Forests, ADM Capital, BNP Paribas and local non-governmental organizations. It brings long-term finance at below market rates to projects and companies that stimulate green growth and improve rural livelihoods.
The initiative navigated complex issues, including historical deforestation and land ownership disagreements, and brought together teams from across the government.
Along with funding compact rubber plantations, it helped to create a 9,700 ha conservation area beside Bukit Tigapuluh National Park which has served as a transit corridor for elephants, tigers, orangutans, sun bears and various endangered bird species.
“One thing that other companies can learn from [this] experience is a commitment to allocating a large enough area for wildlife conservation,” said Adi Junedi, Executive Director of the Indonesian Conservation Community Warsi, an NGO working on the project. “This approach needs to be adopted by other commodities companies, but encouragement from the government, NGOs and investors, such as the [landscape facility] is required.”
Loans under the Tropical Landscape Finance Facility are issued on the condition that ambitious environmental and social impact targets are reached. By tying environmental and social commitments to receiving below-market-rate finance, the model ensures that projects are accountable to meeting their targets, say its backers.
They believe the model can be replicated in other countries, fostering sustainable commodities markets that will safeguard nature, address the climate crisis and improve the lives of rural communities.
.jpeg&description=How+innovative+finance+is+helping+to+protect+Indonesia%E2%80%99s+forests){kind=link}