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New Business Models Needed for Reforestation

House on riverBrazil is home to over half of the planet’s tropical forests including the Amazon and the Atlantic Forest. Each year an area equivalent to over nine million soccer fields is deforested or degraded in Brazil due to logging or conversion to cropland or grazing land. The loss of forests has major irreversible climate, biodiversity and socio-economic impacts, and the rate of reforestation and recovery of degraded lands is but a small fraction of what is being lost throughout Brazil every year. The Mata no Peito initiative seeks to pilot new business models for reforestation and avoiding deforestation that can demonstrate scale and replicability. Filling the need for upfront risk capital is also fundamental for projects to be properly designed to tap the nascent market for forest carbon finance.

Mata No Peito Provides Seed Funding

fishing.jpgMata no Peito will provide seed funding to innovative projects that can move beyond business as usual to demonstrate scale and create models for replicability. The Mata no Peito seed investment will fund the early-stage project preparation and development, which may lead to funding by public and private investors. All projects will have a carbon finance component to provide an ongoing source of revenue to help sustain the project. The program will operate as a revolving fund, therefore projects will be expected to repay the seed investment.


Eligible Projects


Eligible projects are those that reforest degraded lands and those that reduce deforestation by providing alternative incomes to forest-based communities and demonstrating sustainable land use practices. While forests are the focus, the heart of the projects should be demonstrating integrated solutions that involve local communities who depend on the forest for their food, water and livelihoods. Projects will address long-term sustainability issues by overcoming environmental, cultural, political and socio-economic challenges. Projects will be selected via a competitive application process.