The Restoration Seed Capital Facility (RSCF) provides early-stage funding to support private fund managers and projects focused on forest and landscape restoration, with the goal of mobilizing more private investment in nature; so far the RSCF has supported 7 projects across multiple regions, leading to over $50 million in additional investment; however, challenges remain around the resource intensity required for fund and project development at the necessary scale of investment.

1. #LuxFinance4Nature
#LuxFinance4Nature
Closing the Nature
Finance Gap
Practical solutions to mobilize private investment for
landscape restoration

2. #LuxFinance4Nature
#LuxFinance4Nature
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What sector do you come from?

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What is the greatest challenge to mobilizing private finance for landscape restoration
at scale?

4. #LuxFinance4Nature
#LuxFinance4Nature
Investment in nature-based solutions must
double by 2025 and triple by 2030 to meet
global climate change, biodiversity, and land
restoration targets
State of Finance For Nature Report, United Nations Environment Programme, 2022

5. #LuxFinance4Nature
Main obstacles:
• Pre-investment stage resource-intensive and
risky
• Fund managers often have limited
funding available to cover this resource-intensive
stage
• Result is reduced pipeline of
investment opportunities and, ultimately, reduced
levels of investment in FLR
Funding is not being deployed
at the scale needed

6. #LuxFinance4Nature
The Restoration Seed Capital Facility (RSCF) aims
to stimulate more private fund managers and
investment advisors to set up new funds that focus
on forest and landscape restoration, build strong
pipelines and make sure that more projects reach
financial close.
RSCF provides early-stage support in the form of
reimbursable grants for:
• Fund development
• Pipeline development
• Project development
Making investments in
landscape restoration happen

7. #LuxFinance4Nature
• Launched in late 2020, running until 2027.
• 4 partners onboarded so far, all for pipeline and
project development support
• 7 investments supported to date in their
development phase across Latin America,
sub-Saharan Africa, and South-East Asia
• 3 of these already successfully closed, leading to
over USD 50 million in investment
• Strong pipeline with more focus on fund
development support
RSCF: results so far

8. #LuxFinance4Nature
• Fund development remains a major challenge
• Pipeline and project development support
remains important especially for complex and
risky projects
• Resurgence of voluntary carbon market has
radically changed the sector but still risky
• Mismatch between need to scale and
time/resources needed to implement sound
strategies at the landscape level
Lessons learnt so far

9. #LuxFinance4Nature
#LuxFinance4Nature
Arbaro Advisors
Investing in sustainable forestry in
Latin America and Sub-Saharan Africa

10. #LuxFinance4Nature
Background of Arbaro Advisors
Unmatched combination of skills and track record, including the Arbaro I fund
ESTABLISHED IN 2009. TEAM OF 280+ STAFF 880+
COMPLETED INVESTMENTS IN 50+ COUNTRIES.
Fully authorised Alternative Investment
Fund Manager headquartered in Frankfurt,
16 offices worldwide
EUR >2.8 bn assets under management
(6 funds)
ESTABLISHED IN 1998. TEAM OF 100+ STAFF. 700+
SUSTAINABLE FORESTRY PROJECTS ACROSS 75
COUNTRIES.
Global forestry consulting and
management company headquartered in
Freiburg

11. #LuxFinance4Nature
Introducing Arbaro Fund I
Sustainable forests and timber production in Latin America and Sub-Saharan Africa
Deliver financial return to
investors
Generate global and local
environmental benefits
Contribute to social development in
the target countries
Grow forests Manage forests Protect natural
habitats
Process timber

12. #LuxFinance4Nature
Arbaro Fund I Portfolio
Diversified portfolio in seven countries across Lat-Am and Sub-Saharan Africa

13. #LuxFinance4Nature
RSCF Support
Two service lines – pipeline support and project development
Three projects received project development
support:
• Prosperidad Peru
• Forestal del Caribe Guatemala
• Ecua America Teak Ecuador
Project development support allowed Arbaro to
undertake several critical studies and
assessments simultaneously, these included in
all cases various land tenure assessments,
Environmental and Social impact assessments
and E&S compliance reviews
All three projects reached bankable stage and
resulted to re-flow of funds back to RSCF

14. #LuxFinance4Nature
Video:
Ecua America Teak

15. #LuxFinance4Nature
Ecua America Teak in Ecuador
Case study
• Project comprises of 1,000 ha of land, of which 870 ha are planted
with teak, and two integrated facilities: a sawmill and a nursery
• Arbaro plans to expand the operations up to 1,700 ha of
plantations and increased sawmilling capacity
• Plantations and industry are very well located in a region that is
highly developed in terms of infrastructure, agriculture and
forestry business, and within short distance to Guayaquil, the most
important export harbor in the country
• The objective is to export teak roundwood, as well as blocks and
sawnwood, to the global teak market
• Arbaro introduced major improvements regarding formal labour
relations, occupational health and safety in operations,
environmental and social safeguards, and FSC certification
The project supports restoration and conservation in several ways:
• reforest areas that are currently not forested
• conserve and protect any natural forests and also any other
vulnerable ecosystems in the project area.
• reforest any harvested areas

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Maderas Prosperidad in Peru
Case study
• Maderas Prosperidad is a Peruvian wood processing company
founded in 2015, it produced pallets for the fast-growing regional
agroindustry out of pine sawnwood imported from Chile
• Arbaro funds the expansion of industrial operations as well as
backward integration, which allows the company to rely on local
supply and becoming fully integrated
• Communities will benefit from income from wood sales and
lease, as well as employment opportunities and skill
development in sustainable and improved forest management
The project supports restoration and conservation efforts in three
ways:
• utilize existing plantations that are poorly managed and could
therefore e.g. potentially create a fire hazard. Good management
practices are introduced. All harvested areas are replanted
(Currently harvested plantations are not replanted in the region)
• reforest areas that are currently not forested
• conserve and protect any natural forests and also any other
vulnerable ecosystems in the project area.

17. #LuxFinance4Nature
Forestal del Caribe in Guatemala
Case study
• Forestal del Caribe is a greenfield project in the Izabal region,
where it will establish 1,000 ha of Gmelina plantations for
producing pallets
• Initial land titles include several landuses from poorly managed
rubber and euca plantations to large areas of protection forest.
• Main protection areas are separated into another land title and in
cooperation with a local NGO Fundaeco put under permanent
protection status removing the risk of these areas taken into
commercial utilization or other such land use change
• The remaining land includes more than 500 ha of natural habitats
for conservation and put under protection by the company
• The project helps onshoring of the value chain and replaces
supply from currently imported sawn timber
The project supports restoration and conservation in several ways:
• reforest areas that are currently not forested
• conserve and protect any natural forests and also any other
vulnerable ecosystems in the project area.
• reforest any harvested areas

18. #LuxFinance4Nature
Video:
Mabel Morán
E&S Manager
Ecua America Teak, Ecuador
Please note, this film is in Spanish.
Please tune the headphone found at your seat for live translations:
01 English
02 French

19. #LuxFinance4Nature
#LuxFinance4Nature
The Shared Wood
Company (SWC)
sWc

20. #LuxFinance4Nature
SWC – WHO WE ARE
Project developer
and operator
sWc
Latin America Europe Africa
Corporate partners
/ offtakers
& …
& …
Investors
NGOs, communities,
companies, governments…
Local partners
Pipeline
development

21. #LuxFinance4Nature
SWC’s mission is to protect existing ecosystems, restore degraded land and produce
sustainable forestry and agricultural products closely built with local communities
Vision &
Mission
PROTECT
FOR THE VERY LONG
TERM
20-30 years
RESTORE
AT SCALE
PRODUCE
SUSTAINABLE VALUE
CHAINS FOR PEOPLE
Multi-revenues
Landscape approach Stakeholder engagement
Community development
Biodiversity Protection Impact by design

22. #LuxFinance4Nature
PROTECT existing
forests and ecosystems
from deforestation and/or
degradation
PRESERVE carbon
sinks
National parks,
conservation concessions,
national protected areas
hosting biodiversity
hotspots
Sustainable
Forestry
Natural Forest
Protection
Biodiversity
Protection
Agroforestry
REGENERATE
degraded lands and
biodiversity building on
agroforestry systems and
timber value chains
BUILD or enlarge carbon
sinks and biodiversity
Agroforestry and forestry
plantations
REGENERATIVE
PROJECTS
CONSERVATION
PROJECTS

23. #LuxFinance4Nature
CASE STUDY – PROJECT PADOUK Project type : conservation concession
Geography : Congo Basin
Area : 200’000 hectares
Landscape
approach
Land mapping
Biodiversity
protection
Conservation areas and reduced forest
fragmentation
Scientific & research partnerships
Activities contributing
to improve livelihoods
Inclusive
Community
development
Trainings & monitoring
Stakeholder
engagement
Participative
Control & surveillance
Creation & animation of governance bodies
Constant communication

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#LuxFinance4Nature
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What are the opportunities to scale up private finance for landscape restoration?

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Learn more
Web:
restorationfacility.org
Email:
info@restorationfacility.org
Linkedin:
restoration-seed-capital-facility-rscf