Tropical forests and peat are protected and restored, smallholder livelihoods are improved, and production has increased.
To prove that financing inclusive, sustainable and deforestation-free commodity production can be commercially viable and replicable, thus strengthening the case for a new rural development paradigm that protects valuable forests and peatlands and promotes high-productivity agriculture.
The lending philosophy of the andgreen.fund is to demonstrate proof of concept for both public and private actors on how to provide for inclusive economic growth and forest and peat protection (and potentially restoration) when financing the production of agricultural commodities that are sourced from tropical landscapes. It will do so by:
- Providing credit facilities only in jurisdictions with progressive forest and/or peat protection agendas and sustainable development strategies.
- Adding quantitative output-based environmental and social criteria and targets to the financing of commodity production.
- Improving livelihoods of smallholders by including them in high-productivity, sustainable supply chains.
- Attracting commercial investors into such projects by partly mitigating their credit risk (financial) and environmental risk (sustainability safeguarding).
- Stimulating innovation in business models and approaches to catalyse financially sustainable, deforestation free, socially inclusive, high productivity agriculture in tropical forest landscapes.