ECONOMY-SCIENTIFIC-TECHNOLOGY
                    
                    
                    
                    
                    
                     
                        
                     
                             ADB supports sustainable forestry and biodiversity
                              08 March 2022 | 07:24:00 AM 
                             The Asian Development Bank (ADB) has signed a $15 million equity investment in New Forest’s Tropical Asia Forest Fund 2 (TAFF2) L.P. to support sustainable forestry practices in Southeast Asia and reduce logging in natural tropical forests by helping sustainably managed plantation companies to scale up their operations. 
                             
Illustrative photo
The investment comprises $5 million  from ADB’s ordinary capital resources and $10 million from the  Australian Climate Finance Partnership (ACFP) trust fund. TAFF2  investments will target climate adaptation as well as climate  mitigation. Opportunities will be sought in Cambodia, Indonesia, the Lao  People’s Democratic Republic, Malaysia, Thailand, and Viet Nam 
 
“Investment in sustainable forestry is limited in developing countries  due to market, political, and natural resource risks,” said ADB Private  Sector Investment Funds and Special Initiatives Director Janette Hall.  “ADB’s investment will enable best practice forestry companies that  currently lack access to growth capital to engage in commercial,  sustainable forestry. It will help to improve the livelihoods of  forestry workers and communities, enhance biodiversity, and deliver  climate outcomes through reduced logging of natural forests.”
With a target size of $300 million, the fund intends to invest in  forestry and related companies that can demonstrate Forest Stewardship  Council certification of their assets. It will invest in sustainably  managed commercial forest plantation companies and acquire forestry  assets, including established and brownfield plantations, greenfield  developments, and processing facilities. 
The fund will be managed by New Forests Asia (Singapore) Pte. Ltd., an  established and leading forestry fund manager in Asia and the Pacific.  ADB will work with New Forests Asia’s social and environmental  management system and capacities, such as investment screening, impact  assessment, and monitoring. ADB will provide guidance on best practices  to advance gender equality, including upskilling of female plantation  workers. It will also help TAFF2 to apply a gender lens to investing  through a scorecard to highlight areas where action is needed to improve  gender equality. 
“Asia is central to the economic and sustainability transformations  happening in the 21st century. Asia has an important role to play in  aligning its growth with climate-positive, nature-positive, and  sustainable development outcomes,” said New Forests Chief Executive  Officer David Brand. “The TAFF2 investment strategy has been developed  to invest capital in these transformations, using the blended finance  structure to mobilize more capital towards high social and environmental  impact outcomes.”
New Forests is a global investment manager of nature-based real assets  and natural capital strategies, with $5.9 billion in assets under  management across 1.1 million hectares of investments. New Forests is a  signatory of the United Nations Principles for Responsible Investment  and a founding member of the Net Zero Asset Managers Initiative.
ACFP is a concessional blended financing facility managed by ADB and  funded by the Government of Australia. ACFP seeks to catalyze financing  for private sector climate adaptation and mitigation investments in the  Pacific and Southeast Asia, and address market gaps and demand by  derisking high development impact projects and bringing them to market.
(dtinews.vn)
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