CIF Invests $143M To Restore Forests And Boost Resilience

The CIF board has approved $143 million to finance large-scale nature-based solutions in Brazil, Kenya, and the Zambezi River Basin in Africa. The funding, under CIF's Nature, People, and Climate program (NPC), is projected to mobilize nearly $1 billion in co-financing, spurring private-sector investment in reforestation, biodiversity conservation, and ecosystem restoration. The initiative is a major milestone toward addressing climate change, restoring degraded lands, and enhancing the resilience of vulnerable communities.

Brazil will carry out a sweeping $250 million investment program, of which $47 million will be provided under CIF financing. The main priority will be the restoration of massive tracts of degraded land in the Amazon and Cerrado biomes, key ecosystems that are important to global climate control. The proposal is to rehabilitate 54,000 hectares of degraded land in the Tocantins-Araguaia Basin and generate 21,000 environmental and restoration jobs. The initiative is created to end illegal deforestation, agricultural vulnerability, and economic hardship among local communities relying on forest products.

This transformation from the "Arc of Deforestation" to the "Arc of Restoration" is a paradigm shift in Brazil's climate change fight, said Ivan Oliveira, Deputy Secretary of Foreign Affairs of Brazil's Ministry of Finance. By investing in restoration, the program aims to reduce one of the country's largest sources of emissions while creating sustainable economic benefits. The financing arrangement entails $100 million from the Brazilian Development Bank and a further $100 million from the World Bank, CIF's first significant investment in the Amazon biome.

In Kenya, CIF's NPC project will invest $35.66 million in conservation of wildlife, Indigenous peoples, and priority ecosystems in Lake Victoria South and Ewaso Ng'iro North. With a further $108 million co-financing, the program will be used to support ecotourism, a sector that already contributes 8.2% of GDP in Kenya. The program will also enhance the support for Indigenous communities such as the Maasai to promote nature-based solutions that resonate with indigenous conservation culture. Other core objectives include progressing regenerative agriculture and building conservation-compatible businesses, so that the local communities economically benefit while maintaining their natural habitats.

Slightly further south, the Zambezi River Basin, covering six nations—Malawi, Mozambique, Namibia, Tanzania, Zambia, and Zimbabwe—will get $60.35 million to boost climate resilience. The investment is expected to attract over $10 in co-financing for each $1 of investment, highlighting the private sector's role in climate adaptation. The program aims to support strengthening sustainable forestry, wildlife conservation, and voluntary carbon markets. Additionally, it aims to provide alternative livelihoods for communities affected by deforestation and climate change, reducing reliance on environmentally harmful activities.

An important part of the overall CIF investment is the Dedicated Grant Mechanism (DGM), which will directly invest $15 million in Indigenous and local communities in the three regions. This money gives these communities the power to drive their own sustainability initiatives, with the assurance that environmental renewal is imbued with local knowledge and local priorities.

Tariye Gbadegesin, Climate Investment Funds CEO, underscored the importance of this financial investment, noting that the $143 million investment will have the potential to mobilize almost $1 billion in total financing. In her view, timely and appropriate financial support can generate new opportunities, helping individuals who conserve forests, rivers, and wildlife as well as enhance long-term sustainability.

The CIF's Nature, People, and Climate program is a $400 million initiative to mainstream climate resilience, land use, and economic development in low- and middle-income countries. With commitments nearing $300 million, recent investments in Brazil, Kenya, and the Zambezi Basin highlight a worldwide move toward nature-based solutions. They not only mitigate climate but also improve biodiversity, generate employment, and achieve sustainable livelihoods for millions of people.

While the world struggles to meet the mounting climate crisis, CIF's investment proves the increasing acknowledgment of nature-based solutions as an essential instrument for resilience and sustainability. Through the promotion of public-private partnership and local engagement, these efforts provide a template for future climate finance initiatives to ensure that economic and environmental objectives walk together.