The objective of this TC is to contribute to the mobilization of domestic and foreign capital to finance sustainable forest-based businesses, especially plantation-based forestry and natural forest management. The specific objectives are fivefold: 1) undertake a detailed survey of capital market instruments currently used for forest-based business financing in selected Latin American countries with developed forestry sectors (equity, investment trusts, factoring, securitization, bonds, hedging; partnerships, etc.) as well as selected extra regional countries known for advances in forestry finance; 2) identify promising forest finance instruments that could be used to a greater extent in LAC or introduced for the first time, and the role of IDB group; 3) identify the legal, regulatory, and institutional requirements or barriers to their potential adoption and greater use in forestry finance markets in Brazil, as a pilot, and design appropriate operational solutions and project design guidelines for their concrete adoption ; 4) develop innovative forestry schemes using carbon finance credits that can be possibly captured and used to augment revenue streams and cash flow; and 5) promote the use of instruments deemed most feasible with potential institutional and other investors as well as with forest entrepreneurs.
Project Detail
Country
Regional
Project Number
RS-T1277
Approval Date
October 11, 2006
Project Status
Closed
Project Type
Technical Cooperation
Sector
AGRICULTURE AND RURAL DEVELOPMENT
Subsector
AGRIBUSINESS
Lending Instrument
-
Lending Instrument Code
-
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 150,000.00
Country Counterpart Financing
USD 0.00
Original Amount Approved
USD 150,000.00