The Forest Performance Bond Program, led by UNCDF, aims to mobilise private and public investment through innovative financial instruments. The program supports forest-positive businesses, promotes sustainable agriculture and energy solutions, and strengthens climate resilience across Central Africa. The initiative seeks to transform forests from exploited resources into valued nature assets, while improving livelihoods and contributing to global climate goals.
Forest Performance Bond Design
Countries:
Regional
Topics:
AgricultureForest sector+1
Status:
Closed
Amount:
$ 1,893,656
Start Date:
22/11/2022
End Date:
31/03/2025
Implementing Organizations:
UNCDF
National Partners:
-
Timeline
Objectives
Develop innovative financial products tailored to smallholder farmers, rural SMEs and local authorities. Strengthen the capacity of financial institutions to integrate environmental and climate sustainability into their practices. Support local authorities in land use planning and the integration of sustainability criteria. Facilitate the mobilisation of private investment towards sustainable and resilient economic activities. Contribute to reducing deforestation in targeted areas through better governance and green economic incentives. Improve the living conditions of local communities through job creation, increased incomes and the development of sustainable economic alternatives.
millions dollars approved
millions dollars transferred by CAFI
Small producers and rural SMEs with access to financial products
Managers of financial institutions and local authorities trained on sustainability and financial inclusion standards
Strategic sectors supported
territorial plans adopted, incorporating environmental sustainability and inclusive resource management
Results to date
By project closure, the following was achieved:
- Access to finance: more than 12,000 small producers and rural SMEs have gained access to tailored financial products (green loans, microfinance).
- Capacity building: more than 1,500 financial institution managers and local authorities have been trained in sustainability and financial inclusion standards.
- Investments mobilised: over $15 million in additional private capital catalysed through CAFI funds.
- Land management: approximately 35,000 hectares of land managed using sustainable practices (agroforestry, climate-smart agriculture).
- Reduced deforestation: measurable reduction in forest pressure in targeted areas (≈ 8% reduction over three years).
- Local governance: adoption of 12 territorial plans integrating environmental sustainability and inclusive resource management.
- Socio-economic impacts: 2,800 new rural jobs created, Average increase of +20% in the income of direct beneficiaries.
Documents
| Document Name | Date | Download |
|---|---|---|
 Project document - Scaling-up commercial investment in deforestation-free Central African commodity supply chains - UNCDF |
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Download 
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| 2024 Annual report - Scaling-up commercial investment in deforestation-free Central African commodity supply chains - UNCDF |
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Download
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