Press release: Partnership signed to advance forest and biodiversity bonds

Jakarta, February 11, 2025 – The Dutch Fund for Climate and Development (DFCD) and Forest Carbon signed an agreement in Jakarta to work together on managing forests in a way that adapts to climate change and protects biodiversity. The event brought together representatives from Indonesian government ministries, DFCD, Forest Carbon, and various international organisations to highlight their shared goal of protecting nature and reducing emissions. This collaboration aims to help restore hundreds of thousands of hectares of forests and wetlands, which will not only protect wildlife but also provide new jobs for local communities. With this agreement, DFCD is showing its continued commitment to protecting biodiversity and supporting the private sector to adapt to climate change.

Tackling environmental threats in Southeast Asia

Forests and wetlands in Southeast Asia are facing growing threats from deforestation, biodiversity loss, and climate change, putting the livelihoods of local and indigenous communities at risk. Forest Carbon, a top environmental asset manager, is tackling these issues by using creative ways to conserve and restore nature. By expanding its reach through smart financing solutions, Forest Carbon works to protect essential ecosystems, cut down on greenhouse gas emissions, and build up resilience in local communities. With backing from the DFCD Origination Facility, Forest Carbon is working on a Forest and Biodiversity Bond, setting the stage for big investments in nature-based solutions that help both the environment and the people living in it.

A new green investment model

SNV, through the DFCD’s Origination Facility, will support Forest Carbon in developing a Forest and Biodiversity Bond. The blended finance instrument designed with DFCD support will quickly fund the protection and management of more than 300,000 hectares of critical ecosystems in Indonesia, and help the company expand internationally to the Philippines and Bhutan. Grant funds will be used to develop and launch a green bond structure, funding essential design elements to ensure the instrument is bankable. Key activities will include strengthening Forest Carbon’s Environmental and Social Management System (ESMS) and building out community benefit-sharing frameworks to guarantee real and meaningful benefits for local communities.

Strategic support and expected impact

The project is focused on speeding up the protection and restoration of essential ecosystems like peatlands, mangroves, and tropical forests, aiming to protect biodiversity, cut down on greenhouse gas emissions, and improve livelihoods for local and indigenous communities. With full investment, it is expected to lead to over 300,000 hectares of sustainably managed forests and wetlands. In addition, it will mitigate 4.2 million tons of greenhouse gas emissions per year, protect critical biodiversity areas, and positively impact the lives of over 23,000 people, including marginalised groups.

Jeffrey Chatellier, CEO of Forest Carbon, remarked: "The DFCD grant and technical assistance package will help Forest Carbon move closer to achieving our goal of protecting one million hectares of tropical forests and wetlands. By funding key elements of the green bond design, we are able to launch a structured finance model that can be scaled across our sector. We are excited to collaborate with DFCD to deploy capital on the ground for a premium environmental asset portfolio that promotes climate adaptation, biodiversity protection, and improved livelihoods."

Alex Downs, Business and Investment Officer at DFCD, stated: "This Origination Facility support will accelerate the creation of a truly scaleable solution to fund protection of critical ecosystems and biodiversity habitat, while delivering returns for investors and vulnerable communities. Forest Carbon’s vision aligns perfectly with DFCD’s mission to de-risk and unlock high-impact investments in climate and biodiversity projects."

Media contacts:

Devan Wardwell, Chief Operating Officer
d.wardwell@forestcarbon.com

Alex Downs - Business and Investment Officer (Asia), DFCD
adowns@snv.org

Zala Zbogar - Marketing Communication Officer, DFCD
zzbogar@snv.org

For editors:

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and the European Commission, and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit: www.thedfcd.com.

Forest Carbon is a leading environmental asset manager in Southeast Asia. With over 14 years of experience, the company manages 358,000 hectares of critical ecosystems and specializes in designing scalable, high-impact conservation and restoration solutions. Forest Carbon’s mission is to deliver measurable climate, biodiversity, and social benefits through innovative financial instruments and best-in-class environmental standards. For more information, please visit: www.forestcarbon.com