Design of a private forestry financing vehicle

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Client DFID
Dates 2011
Service(s)Policy & Economics, Strategy & Finance
CEPA advised the UK government, including the Department for International Development (DFID), the Department of Energy & Climate Change (DECC) and the Department for Environment, Food & Rural Affairs (Defra), on the concept and design of a financing vehicle to invest in sustainable private-sector forestry in developing countries.
We began by carrying out a market assessment and extensive consultations with key stakeholders. This enabled us to propose initial sectors that would be suitable for investment. We then considered the commercial structuring of the vehicle, including the development of governance and management arrangements. The vehicle was designed to overcome barriers to the flow of investment into forestry projects internationally.
We drew on our extensive experience setting up donor financing facilities to propose a model that was most appropriate to HM Government’s needs and the current issues in the forest sector.