Background

For some years now, investments in green securities have become increasingly popular. Part of the green securities market are forest funds and other forest-focused financial investment products, which are also growing. However, these investment products often contribute little to forest and biodiversity conservation or even harm these goals. New environmental regulatory frameworks such as the EU taxonomy can provide transparency, but many financial market actors need support in dealing with the regulatory framework.

Project Goals

The project develops an overview of the current market of investments for forest and biodiversity conservation. With the help of a market analysis, financial market actors in Germany will be able to assess which forest investments are implemented under social standards and at the same time make a positive contribution to the protection of biodiversity. The market analysis comprises several methods: a literature research, questionnaires and interviews with the providers of the investments. In addition, experts are involved who assess the implementation of forest investments on site. 

The results will be evaluated using a catalogue of criteria for the social and ecological analysis of forest projects. At the same time, the project also promotes dialogue between the various financial market actors (providers of forest investments, banks, companies, political representatives, consumers, etc.) within Germany through a round table. Finally, recommendations for action are developed for the different groups. An important role in the discussion rounds and the catalogue of criteria is played by the new EU taxonomy: a new legal requirement that sets minimum standards for certain economic activities, such as forestry and agricultural practices, in order to achieve concrete environmental goals. The catalogue of criteria for the social and ecological assessment of forest projects is compared and supplemented with the minimum standards of the EU taxonomy, gaps are identified. Furthermore, local project partners of GNF and OroVerde, who implement forest restoration projects worldwide, evaluate to what extent the standards of the taxonomy are also appropriate for the tropics. The key outcome of the findings and recommendations will be a guide and a webinar series for the above mentioned target groups.