African countries are turning to innovative financing models to safeguard and restore their forests, yet the funding gap remains substantial. According to the first progress report of the Forest Finance Roadmap, launched at the Forest & Climate Leaders' Partnership during Climate Week NYC, the annual forest finance gap stands at $66.8 billion. This significant shortfall highlights the challenges in achieving the goal of halting deforestation by 2030.
The Forest Finance Roadmap aims to address the considerable disparity between the available funding and the financial requirements for forest preservation. Forests account for approximately 20 per cent of the cost-effective climate mitigation potential but receive less than one per cent of global climate finance. Emelyne Cheney, Director of the FCLP Secretariat, emphasized that the report provides clarity on the flow of forest finance, stressing that forests must remain central to the climate agenda.
African countries are exploring various financing models that combine domestic budgets, international finance, and private investment. For instance, Kenya has secured $229 million in new external finance, including a $200 million World Bank operation and a $29.2 million Green Climate Fund grant. Additionally, Kenya has increased its forestry budget by $38.7 million in 2025/26. These efforts demonstrate the potential for African nations to mobilize resources for forest conservation.
Ethiopia is also making significant strides in forest conservation through its Green Legacy Fund. The country is allocating $40-80 million annually from its budget to tackle land degradation, which is estimated to cost $4.3 billion yearly. This initiative underscores the commitment of African nations to addressing the challenges of deforestation and land degradation.
Nigeria has announced its Securing Nigeria's Forest Future Country Package, which is set to be launched at COP31 in Türkiye. This package aims to coordinate forest and biodiversity investments, highlighting Nigeria's dedication to sustainable forest management. Minister of Environment, Balarabe Abbas Lawal, stressed that Nigeria must strengthen the enabling environment for private and blended finance to deliver livelihoods for communities.
The Central African Forest Initiative is developing a $290 million payments-for-ecosystem-services pipeline in the Congo Basin, targeting $2 billion by 2035. This initiative demonstrates the potential for innovative financing models to support forest conservation in the region. Africa holds 663 million hectares of forest, accounting for approximately 16 per cent of the global forest area.
Despite the progress made by African countries in adopting new financing models, the report notes that investment remains insufficient to meet the 2030 forest target. The Forest Finance Roadmap and the FCLP aim to mobilize resources and coordinate efforts to address the $66.8 billion annual forest finance gap. Key stakeholders emphasize the need for continued support and investment in forest conservation to achieve the goal of halting deforestation by 2030.
Key points
- African countries are adopting new financing models to protect and restore forests.
- The annual forest finance gap stands at $66.8 billion.
- Forests account for approximately 20 per cent of the cost-effective climate mitigation potential.
