How TFIF could multiply forest impact of TFFF

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.

About the authors

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

Ulf Erlandsson

Founder, Board member

Dr Ulf Erlandsson founded the Anthropocene Fixed Income Institute and was its first CEO. A pioneer of climate-focused fixed income portfolio management, he was named Environmental Finance’s Bond Personality of the Year 2022.