IUCN and KfW Launch New Initiative to Scale Up Forest Restoration in Latin America

The FAF was created in December 2024 by the International Union for Conservation of Nature (IUCN) and KfW Development Bank, with an initial seed funding of €19 million provided by the German Federal Ministry for Economic Cooperation and Development (BMZ) to finance up to 20 projects across Central America and Ecuador over a six-year period.

Juan Carlos Navarro, Minister of Environment of Panama, Pro Tempore President of the Central American Commission on Environment and Development (CCAD) and Pro Tempore President of the Forum of Ministers of Environment of Latin America and the Caribbean, stated that “for Latin America the Facility represents not only an opportunity to restore our forests, but also to create green jobs, strengthen community resilience, and honour the leadership of Indigenous peoples and local communities. By restoring degraded lands, we are safeguarding water, food security, and the natural heritage that sustains our people. Today we send a clear message: Latin American nations will continue to support and lead the global movement for forest restoration and climate action.”

Through open calls for proposals, carried out in close collaboration with the respective national authorities and in accordance with their priorities, the FAF will invite civil society organisations, public institutions, and private sector actors to submit project proposals that integrate restoration, conservation, and sustainable use of forest landscapes. This approach aims to strengthen biodiversity, improve resilience to climate change, and support sustainable livelihoods.

“Latin America is home to the world’s largest expanse of tropical forests, crucial for climate regulation and biodiversity conservation, and a source of livelihoods for millions of people including Indigenous Peoples and rural communities. However, forest degradation and fragmentation are putting ecosystems and human well-being at risk. With the launch of the Forest Action Facility, we are taking a decisive step to scale up forest landscape restoration in Latin America,” said Dr Grethel Aguilar, IUCN Director General, during the launch event. “By restoring these forests, we are not only protecting biodiversity and stabilising the climate — we are also investing in people, their rights, and their opportunities. Together, we can build a future where humanity prospers with nature as our strongest ally.” 

Established as an independent, non-profit entity under UK law, the Facility ensures transparency and accountability through multi-level audits. Landscape-level impacts will be measured using international monitoring standards, tracking restored forest areas, trees planted, CO₂ captured, and local communities supported.

The Facility is designed as an open platform, welcoming contributions from additional governments, foundations, and companies committed to advancing restoration across Latin America. Specific agreements can be tailored to reflect particular approaches or participation structures.

“The Forest Action Facility is designed to foster true partnerships and mobilise resources for restoration. We warmly invite other governments, foundations, and private actors to join this open platform through future calls for proposals, helping us expand the reach and impact of forest landscape restoration across Latin America and beyond”, noted Claudia Arce, KfW Regional Director in Latin America and the Caribbean. 

For the Central America financing window, the Organization of American States (OAS) will act as the Facility’s political partner, supporting its member states in accessing funding and facilitating participation, while helping the Facility identify high-priority forestry investments.

“The support from the FAF not only will reverse the deforestation trends, but it will also help restore vital landscapes, while helping rural communities with the creation of jobs, investments and income opportunities tied to ecosystems management. We look forward to be serving as the vital link for the countries of the region to the Forest Action Facility”, noted Mark Lambrides, Director of the Department of Sustainable Development at the OAS.