WASHINGTON, DC, 20 April 2023 – Today the White House announced that the US Development Finance Corporation (DFC) is working to assess potential financing of $50 million to help mobilize $1 billion for the BTG Pactual Timberland Investment Group’s (TIG) Latin American reforestation strategy. The announcement was made by President Biden during the Major Economies Forum on Energy and Climate Change, when he outlined a number of actions to rapidly scale forest protection and restoration to help address climate change.
TIG is a U.S. subsidiary of BTG Pactual, a publicly traded investment bank headquartered in Brazil with a market capitalization of approximately US$ 20 billion. TIG’s reforestation strategy aims to protect and restore nearly 300,000 hectares (approximately 700,000 acres) of natural forests in deforested landscapes in Brazil, Uruguay, and Chile; plant hundreds of millions of trees in sustainably managed, independently certified commercial forests; improve biodiversity; and support inclusive and equitable community development. The strategy aims to generate an estimated 35 million tonnes of carbon sequestration over 15 years.
Gerrity Lansing, Head of TIG said, “We are thrilled that DFC sees the value of TIG’s restoration and reforestation strategy, where we are seeking to deliver benefits for climate, rural development and biodiversity. We applaud the governments of Brazil and the United States for their leadership at the Major Economies Forum on Energy and Climate Change, and their recognition of the critical importance of large-scale climate solutions like forest protection, restoration and sustainable management, in addressing the climate crisis.”
Global environmental non-profit Conservation International is serving as Impact Advisor for the strategy to help TIG achieve additional positive environmental, climate, and social impacts.
Mauricio Bianco, Vice President of Conservation International Brazil, said “Protecting nature — and at the same time, having positive socioeconomic impacts — are critical for a climate safe future. Initiatives like this one help chart a new path to a sustainable economy that does just that, all while providing a host of additional benefits to local communities and biodiversity. We are very pleased to collaborate with TIG to help the strategy deliver its mission for positive impact.”
TIG has already invested in nearly 24,000 hectares (approximately 60,000 acres) of previously deforested land in Brazil – an area 35% larger than the District of Columbia – for conservation, restoration, and sustainable management under this strategy.
Mark Wishnie, TIG’s Chief Sustainability Officer, said, “DFC support would expand opportunities to protect important biodiversity values in restored natural forests, while also supporting sustainably managed working forests. Through investments made under this strategy, we intend to demonstrate the contribution the forest sector can make to sustainable, climate-smart economic growth. We are excited to work with both our public and private sector partners to deliver real impact and innovation.”
In 2021, TIG was a founding member of the Forest Investor Club, launched by John Kerry, U.S. Special Presidential Envoy for Climate, at COP26 in Glasgow, UK. The initiative is a network of public and private financial institutions committed to accelerating the pace, increasing the scale, and expanding the scope of investments in restoration, conservation, sustainable forestry and green infrastructure.