Fund for deforestation-free agriculture is now operational

18 Jul 2017 - As its incorporator, it is with great pride that IDH can announce the andgreen.fund

The Fund was originally launched in January 2017 at the World Economic Forum by the Norwegian Prime Minister, Paul Polman on behalf of the Consumer Goods Forum, and Naoko Ishii, the CEO of the Global Environment Facility.

Branded the andgreen.fund, reflecting its aim ‘to green agricultural investments’, andgreen.fund aims to trigger private sector investment into agricultural productivity, whilst protecting millions of hectares of tropical forests, peatlands and biodiversity by 2020.

Agriculture is one of the biggest drivers of deforestation. Between 2000 and 2012, 2.3 million square kilometers of forest was cut down. However, to date, investments into increasing agricultural production to feed the growing world population remain tilted towards expanding into tropical forests rather than intensifying agricultural production on existing arable land.

Andgreen.fund aims to motivate the redirection of financial flows towards intensified land use, combining forest conservation with increased food production and economic growth, thus creating systemic change that will have large scale, long lasting impact. By investing up to $400 million by 2020, the andgreen.fund will provide subordinated credit, under flexible terms. By crowding-in co-investors, the andgreen.fund maximizes the amount of private capital available.

First class governance is key to uphold andgreen.fund’s ambition. To that end, the Board of Directors consists of Nanno Kleiterp, former CEO of the Dutch Development Bank (FMO) and current Chairman of the European Development Finance Institutions and Felia Salim, former Vice President Director of PT Bank Negara Indonesia and now Member of the Board of Directors of Eco Regions International and our executive director, Joost Oorthuizen, is humbled to have been appointed with them.

The Advisory Board will collect the wisdom from five truly aspirational leaders:

  • Ellen Johnson Sirleaf (Her Excellency the President of Liberia, and Chair of the Economic Community of West African States)
  • Helen Clark (former Prime Minister of New Zealand and former Administrator of the United Nations Development Program from 2009 to 2017)
  • Dr. Bayu Krishnamurti (former Vice Minister of Trade Republic of Indonesia 2011-2014 and Senior Lecturer, Department of Agribusiness, Bogor Agricultural University)
  • Rosa Lemos de Sá (Secretary General of Funbio, Brazilian Biodiversity Fund)
  • Per Fredrik Ilsaas Pharo (Director of the Government of Norway’s International Climate and Forest Initiative)

We are also pleased to announce that the role of the Investment Advisor to the Fund has been awarded to Sail Ventures. Andgreen.fund has been designed with the support of Innpact, a consulting firm specialised in the setup of impact finance funds. You can find the full governance structure and biographies of those listed above on the website andgreen.fund. Check there for updates.

It is my hope that the andgreen.fund will prove to be a game changer, helping many members of the Consumer Goods Forum and other private sector companies make their commitment on zero net deforestation actionable. IDH’s role in andgreen.fund going forward will be to actively participate in building an investment pipeline. We encourage others to also put forward investments proposals to andgreen.fund.

Let’s ensure we conclude 2020 knowing we made it happen, through financing intensified land use and forest conservation: we can drive inclusive economic andgreen growth.

 

Helen Clark
Former Prime Minister New Zealand 1999-2008 and former UNDP Administrator 2009-2017

“I am proud and excited to join the Fund’s advisory board. This Fund is an innovative and serious effort to try to influence the capital markets for greener and more responsible investments. If we want to protect tropical forests, international business and governments need to get aligned. Funds like these are a crucial piece of the puzzle.’’

 

Per Fredrik Ilsaas Pharo
Director of the Government of Norway’s International Climate and Forest Initiative

“Solving the deforestation problem requires rational management of global lands. We must protect carbon rich forests and peatlands, produce more commodities on existing farms, and include millions of smallholders in highly productive supply chains. This calls for new regulations and a new investment paradigm. Andgreen.fund will contribute to both. Norway is proud to be an early investor in this fund, and encourages other to join.”

 

Nanno Kleiterp
Chairman of the European Development Finance Institutions (EDFI)

“The andgreen.fund aims to prove that financing inclusive, sustainable and deforestation free commodity production is commercially viable and replicable. It’s a real innovation, as the Fund will be able to mitigate the financial, environmental and social risks and catalyse commercial investors. It is a privilege to be able to contribute, as Chairman of the Board of Directors, to making this initiative a success.”

John-Charles Brom
Chief Investment Officer,  Sail Ventures

“Sail Ventures is honoured to be granted the opportunity to act as the Investment Advisor for the andgreen.fund. It’s our belief that economic returns are only truly sustainable over the long-term if they are able to also generate sufficient environmental and social returns for stakeholders. We look forward to actively supporting the andgreen.fund’s Board and its Contributors to make it an on-the-ground success.”

 

 

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