Forest finance

Forest finance

Private banks, investment funds and public institutions, such as the multilateral development banks, all play an important role in financing forestry as well as activities that impact on forests, such as infrastructure projects and agribusiness. As such, these financial institutions  can have a significant role to play in promoting legality in the forest sector.

Many financial institutions have developed standards, safeguards or guidelines which seek to avoid investing in projects at risk of driving illegal logging and deforestation or are aimed at promoting sustainable practices. However, a major challenge lies in ensuring their effective implementation.