Incentives and barriers to private finance for forest and landscape restoration

Increased private finance can accelerate forest and landscape restoration globally. This study examines incentives and barriers to private restoration finance through semi-structured interviews with asset managers, corporations, and restoration finance experts. The findings reveal that market incentives for corporations include meeting net-emission-reduction commitments, impact and sustainable branding opportunities, and supply chain sustainability. Asset managers, however, face stronger barriers due to the perceived high risk, uncertainty, and low profitability of restoration investments. Investment finance favors low-risk areas, while corporate finance focuses on areas with business presence. Both types often exclude projects emphasizing natural regeneration. Scaling private finance for diverse restoration projects requires expanded and diversified markets for restoration benefits, strong public policy support, and new financial instruments.

Sara Löfqvist, Rachael D. Garrett, Jaboury Ghazoul