Forestry

Aligning the forestry industry with climate goals

Forests play a crucial role in the global carbon cycle, with the potential to act as significant carbon sinks. However, deforestation and forest degradation are major contributors to global greenhouse gas (GHG) emissions.

The forestry industry is vital to both developed and developing nations, forming a substantial part of their capital assets. Addressing climate impacts in forestry requires significant financial flows. 
 

Investment needs: 

• The UNFCCC estimates an additional USD14bn globally will be needed by 2030 for agriculture, forestry, and fisheries.
• For forestry alone, the UNEP projects annual investments of USD17–33bn to achieve a 50% reduction in deforestation by 2030. 
   

Purpose of the criteria 

The Forestry, Land Conservation, and Restoration Criteria provide science-based standards to guide forestry and land conservation projects toward achieving Climate Bonds Certification. 
 

Key objectives: 

• Offer clear guidance for investors to assess the environmental credentials of forest-related green bonds.
• Promote projects that align with global climate targets and sustainable land management goals. 

To qualify, bonds must also meet the reporting and transparency standards of the overarching Climate Bonds Standard. 
 

Eligible projects 

The Criteria apply to a broad range of forestry and land conservation projects, including: 

• Plantation forestry
• Sustainable forest management
• Non-timber forest products (NTFP)
• Forest conservation and restoration
• Conservation and restoration of non-forested land
• Supply chain activities 

Additionally, the Criteria align with the Agri-Food Deforestation and Conversion-Free (DCF) Sourcing Label, certifying entities whose commodity procurement is free from deforestation and nature destruction. 
 

Driving sustainable forestry investments 

By providing a robust framework, the Forestry, Land Conservation, and Restoration Criteria aim to: 

• Reduce deforestation.
• Enhance forest restoration efforts.
• Promote resilience in forestry assets.
• Channel investments into projects that support sustainable land management and global climate goals. 

These standards encourage responsible investments in forestry and conservation, creating opportunities to build a sustainable, low-carbon future.