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 in March 2025:
- A Forest Performance Bond Series was designed, supported by studies on its financial structure, issuance options and mechanisms to reduce investor risks. Business-model studies and market outreach examined how capital-market finance could support forest-positive activities.
- More than 60 businesses responded to the project’s call for applications. Twenty were assessed and seven shortlisted for further development in the DRC and Cameroon, representing approximately USD 17 million in potential financing needs.
- The project helped prepare PRO-CONGO, a joint UNCDF–UNEP programme that combines business support and finance for sustainable agriculture, forestry and renewable energy in four Congo Basin countries. PRO-CONGO was approved in 2025, providing a route to continue developing and financing these opportunities.
Documents
| Document Name | Date | Download |
|---|---|---|
 Project document - Scaling-up commercial investment in deforestation-free Central African commodity supply chains - UNCDF |
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| 2024 Annual report - Scaling-up commercial investment in deforestation-free Central African commodity supply chains - UNCDF |
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