Scaling Climate Finance: Forest Finance Instruments

The Lab’s inaugural concept paper, Scaling Climate Finance: Forest Finance Instruments, proposes seven innovative instruments, each ranked in respect to impact strategy and additionality.


The paper analyses an environmental impact bond, a leveraged carbon fund, a green covered bond, an equity fund designed to upscale continuous cover forestry, risk-adjusted loans, and an exchange for investing in Nature-Based Solutions.


Each concept was developed by reviewing international innovations, adapting promising structures to the unique local context of Aotearoa New Zealand, and conducting workshops and reviews with sector experts and government observers to test, refine and validate the structure.


The paper also identifies relevant indicators for impact assessment, such as IRIS metrics, and potential regulatory changes to support the delivery of more sustainable forest outcomes.