The Reforestation Fund (FMO-61632)

  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
  • Brazil
  • Chile
  • Colombia
  • Paraguay
  • Uruguay
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
The Reforestation Fund
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Oct 13, 2022

Disclosed by Bank Oct 6, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.


The Reforestation Fund (TRF) is a private equity forestry fund developed to invest in Latin America, targeting deforested and degraded lands for the purpose of protecting and restoring natural forests on 50% of its holdings, and planting sustainable tree farms on the remaining 50% of its holdings. TRF seeks to acquire degraded land in major timberland markets like Brazil, as well as Uruguay, Chile, and with opportunistic allocation to Paraguay and Colombia. TRF's investment focus will seek attractive risk-adjusted returns and seek to generate Carbon Offset Credits primarily through a portfolio of investments that convert previously deforested land used for cattle pasture to sustainable commercial tree farms whilst providing added benefits by meeting or exceeding legal limits for protected and restored natural forests (50% of project area). Additional impact will come from the sustainable manufacturing and sale of climate-positive timber products when the commercial plantations mature, next to the creation of sustainable long-term local employment opportunities.


With FMO's commitment, we will be supporting the development of an innovative forestry investment model where we believe the combination of commercial forestry and conservation on previously deforested and degraded land should lead to both attractive investment returns as well as significant ecosystem and climate benefits at scale. In addition, FMO's early commitment is expected to play a strong catalytic role by attracting institutional capital to the sector.


The Reforestation Fund is a clear fit for FMO's Forestry strategy and climate action ambitions. TRF will sequester an estimated 35m tons of CO2e during the Fund term through both the reforestation of degraded land and planting of commercial tree farms. Additionally, the large allocation towards natural forest conservation will also contribute to the recovery and protection of biodiversity and habitat connectivity in the targeted biomes


This is a category-A Fund given the potential materiality of E&S risks and impacts on site and landscape level, that need to be managed by subject matter experts and through sophisticated ESG-informed management measures. TRF's portfolio triggers IFC PS 1-4 and 6, whilst PS 7-8 may be triggered in future regions although TRF's policy is geared towards avoidance. Key E&S risks further stem from the planned conversion of land use into eucalyptus production stands, the managed regeneration and conservation/ protection of natural species, and the use of contracted labour (incl. from offtakers). A strong E&S management system and monitoring regime based on international best practices will be implemented to manage the risks and materialize positive impacts.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Investment Type was nor available at the moment of the snapshot.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - The Reforestation Fund Client Finance

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.


As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to:


Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at:

How it works

How it works