FMO, the Dutch development bank, is providing USD 25 million of longterm funding to the &Green Fund to help it scale up its portfolio over the coming years. To date, &Green has invested in its core focus supply chains, including palm oil, soy, cattle and rubber. FMO’s investment has immediately helped to unlock additional capital for &Green and brings the capitalisation of the fund to over USD 150 million.
“We need innovation and sustainable transformation in the critical supply chains that are associated with deforestation in tropical forest countries. Protecting forests and stimulating sustainable agriculture are of critical importance to combat climate change and will help reach the goals of the Paris Agreement”, says Linda Broekhuizen, CEO ad interim at FMO. “FMO is proud to support the &Green Fund in its efforts to create new private sector investment blueprints that are climate friendly and socially inclusive.”
“FMO is the ideal first partner as a development bank to support&Green Fund’s future growth towards a portfolio of sustainable projects that are attractive for replication and scale up by private sector investors”, says Nanno Kleiterp, Chairman of &Green’s Board of Directors. “We are looking forward to our close partnership, which also demonstrates that investing in challenging commodity supply chains such as cattle or palm oil can be done with the highest standards and clear, demonstrable environmental and social impact.”
FMO’s investment draws from various funding lines of the bank, including Building Prospects and the Dutch Fund for Climate and Development, a mandate implemented on behalf of the Dutch government together with consortium partners, WWF, SNV and Climate Fund Managers. An Action Plan agreed between the &Green Fund and FMO ensures continuity in applying rigorous standards for social and environmental compliance, together with the transparent provision of information through &Green’s website