We bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods
Indonesia is expected to be among the top 5 economies in the world by 2030. With a population of 260 million people and consisting of 17,000 islands, it has significant natural resources. While Indonesia’s economy is growing at a steady pace, this high-growth rate poses many challenges, both social and environmental. Deforestation, emissions, rural electrification and poverty alleviation are just a few of these challenges.
Today, Indonesia’s financial sector is not geared towards these challenges – it favours economic growth above anything else – resulting in a lack of credit availability for projects that are commercially viable yet simultaneously address social and environmental challenges the country faces. There is also the need to look beyond aid in financing green growth, climate change mitigation, conservation and smallholder development objectives of Indonesia at scale.
To take advantage of the momentum, a multi-stakeholder group has established the Tropical Landscapes Finance Facility to bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods. The TLFF was launched by H.E. Darmin Nasution, Coordinating Minister for Economic Affairs at the Coordinating Ministry for Economic Affairs, Republic of Indonesia on 26 October 2016.
We support the achievement of the Paris Agreement and Sustainable Development Goals
Our investment opportunities are impact focused ensuring improved management of forests, biodiversity and ecosystem restoration services. Protecting natural capital is the most effective way to support a transition to a green economy and achieve the SDG targets, as 14 out of 17 SDGs are directly affected by the status of natural resources. All TLFF projects involve marginalised communities as active partners and seek to deliver benefits for women, as they are dependent on nature on an everyday basis.
We support Indonesia in achieving its strategic development goals and climate change targets
The TLFF leverages public funding to unlock private finance for sustainable land use, including in agriculture and ecosystem restoration, and for investments in renewable energy. The TLFF coordinates cross-functionally between the government, private sector and communities to foster large-scale positive change in the country.
The TLFF consists of a Lending Platform and a Grant Fund. Under the Lending Platform, long-term loans issued by TLLF are securitized through a Medium-Term Note (MTN) program. The Grant Fund provides technical assistance and co-funds early stage development costs, offering an opportunity for corporate and private foundations to leverage their funding with private finance.
The TLFF Secretariat, hosted by ICRAF, works in a collaborative manner with stakeholders and offers comprehensive support towards the achievement of the stated goals of the Tropical Landscapes Finance Facility. The Secretariat assists and provides administrative support to the TLFF Lending Platform, TLFF Grant Fund and all other related entities.
Our engagement approach is based on transparency and accountability for all activities we undertake. This is central to the partnerships we form, projects that are implemented and financing opportunities that are generated, so that sustainable development objectives are at the core of what we do. Each project we select goes through rigorous independent environmental impact assessments ensuring that safeguards for the well-being of people, preservation of natural resources and conservation of biodiversity are in place. We transparently publish relevant information about all projects including their social and environmental impacts.
Environmental, Social and Governance Standards
Each TLFF Project is managed to the TLFF investment Policy and ESG Standards. TLFF will also identify key impact objectives for each project and design appropriate measures that include effective consultation with relevant communities. We will measure projects to some or all of our eight core objectives:
The Steering Committee provides overall guidance to the activities of the TLFF. It works in close collaboration with the Government of Indonesia, institutional partners and relevant civil society stakeholders both in the public and private sectors to advance the stated goals of the TLFF on climate change, emissions reductions, forest conservation and inclusive growth.
The TLFF Secretariat works in a collaborative manner with stakeholders and offers comprehensive support towards the achievement of the stated goals of the TLFF. The Secretariat is seed funded by UN Environment, and it backstops the activities of the Steering Committee, Lending Platform, Grant Fund and other related entities. The Secretariat also acts as an information clearing house on public awareness, information and training pertaining to innovative finance. It was inaugurated on 13 December 2016 by Mr. Erik Solheim, UN Under-Secretary General and Executive Director of UN Environment.