Floresta

Floresta is a reforestation venture built around a simple objective: create a profitable model capable of financing large-scale reforestation and forest restoration.

Reforestation can absorb carbon, restore degraded ecosystems, protect biodiversity and preserve natural resources. The difficulty is financing it at the scale and for the length of time required. Projects that depend mainly on donations, public funding or carbon revenues can be difficult to sustain and replicate over the long term.

Floresta addresses this by combining commercial forestry with the restoration and protection of a much larger area of degraded natural forest.

The model uses a relatively small fast-growing teak plantation as its financial engine. The revenues generated by the commercial forest are intended to provide investors with a return while financing the restoration, conservation and long-term management of the surrounding forest.

The model developed for Cambodia covers approximately 17,000 hectares. Around 700 hectares are allocated to commercial teak production, approximately 15,000 hectares to assisted natural regeneration and forest restoration, and around 1,300 hectares to community forestry.

The commercial component is based on more than two decades of research and field experience in forestry and biotechnology. Floresta uses a fast-growing teak process developed to substantially reduce the normal growing cycle of teak while maintaining timber quality, allowing the commercial plantation to operate on a shorter investment cycle.

The environmental component combines active replanting where necessary with assisted natural regeneration, forest monitoring, protection and conservation. The objective is to allow existing degraded forests to recover naturally wherever possible instead of treating reforestation exclusively as a tree-planting exercise.

Local communities are also part of the model. Community forests provide land and commercial forestry activities that can generate income locally, create employment and training, and provide an economic alternative to illegal logging.

A proof of concept was established in Aoral District, Kampong Speu Province, Cambodia, beginning in 2017 and covering approximately 350 hectares. Around USD 6 million in private investment was raised for this initial stage, which was used to test the forestry technology and the broader commercial model.

The longer-term objective is to demonstrate that restoring forests can become an investable activity in its own right. If the model can generate competitive financial returns while financing substantial forest restoration, it can attract private capital that would otherwise not be available to environmental projects and allow the same approach to be repeated in other locations.

Large areas of forest around the world continue to be lost or degraded, and restoring them requires substantial amounts of long-term capital.

The environmental case for reforestation is well established. Growing forests capture carbon, restore habitats, protect soil and water resources and rebuild ecosystems. The financial structure required to implement restoration at scale remains one of the main obstacles.

Most restoration projects ultimately need someone to pay for the environmental benefit. Governments, donors, NGOs and carbon markets can all contribute, but relying exclusively on these sources limits how much land can realistically be restored.

Floresta was developed to address that financing problem directly.

By dedicating a small part of the project area to productive forestry, the model creates an economic activity capable of financing the restoration and protection of the much larger surrounding area. Investors participate because the project is designed to generate a commercial return. That investment, in turn, provides the capital required to restore and manage the forest.

This creates the possibility of a revolving model. Profitable forestry can finance restoration, successful projects can attract further investment, and the same structure can progressively be applied to additional degraded land.

Cambodia provides the first large-scale implementation environment, building on the forestry proof of concept already established in Kampong Speu.

Floresta ultimately aims to demonstrate that environmental restoration does not have to depend exclusively on philanthropy, good will, or public expenditure. A viable economic model can bring private investment into reforestation and significantly increase the amount of capital available to restore forests.

As an expert in impact project management, Together in Life has been appointed by Floresta to manage its reforestation and community support efforts. This work is carried out in collaboration with the Floresta team, as well as representatives of the local communities and government.

The allocation and deployment of funds are planned jointly, while execution is carried out by the Together in Life team.

Proof of concept established and completed in Cambodia. Large-scale implementation under development.