As a sizeable new investor into emerging markets, there are potential impacts beyond the performance-linked forest payments.
Our analysis suggests that the benefit to Tropical Forest Countries (TFC) of this new investment driving funding spreads tighter could be of similar magnitude to the payments, and so has the potential to multiple impact.
Using the data generated by the TFFF to direct investment could have further benefits; both by incentivising extra forest protection from those countries, but also by supporting improved investment returns as the forest protection improves credit outcomes.
