Althelia Seeking Emissions Cuts Raises Cash to Curb Forest LossSally Bakewell
A fund managed by Luxembourg-based Althelia Climate Fund GP Sarl raised more than 60 million euros ($80 million) from investors to prevent forest loss.
The Althelia Climate Fund will invest in initiatives in Africa, Latin America and Asia that conserve forest and prevent unsustainable land use, according to a statement on the fund’s website. Althelia plans to raise as much as 200 million euros in the next year, the statement showed.
Deforestation caused by logging, agricultural expansion and fires makes up almost one fifth of global greenhouse gas emissions, according to the United Nations Reducing Emissions from Deforestation and Forest Degradation program, or REDD. The program seeks to create financial value for carbon stored in forests to encourage developing countries to curb forest-land emissions. Preserving forest can also boost resilience to climate change, according to REDD.
The fund will invest in commodities and agricultural produce as well as emissions reductions created through forest protection, according to the statement. Althelia won as much as 25 million euros from the European Investment Bank and received contributions from the Finnish Fund for Industrial Cooperation Ltd., a development finance company, among others, it said.