CAF announced today that it has approved a $25 million investment for BTG Pactual Timberland Investment Group’s (TIG) Latin American reforestation strategy.
TIG is one of the world’s largest and oldest timberland investment managers with $ 6.2 billion in assets under management across over 1 million hectares in the U.S. and Latin America. TIG is a U.S. subsidiary of BTG Pactual, a publicly traded investment bank headquartered in Brazil with a market capitalization of approximately $29 billion.
TIG’s reforestation strategy aims to protect and restore nearly 150,000 hectares (approximately 370,000 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 also aims to generate an estimated 32 million tonnes of carbon sequestration over 15 years.
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.
With the aim of becoming the green bank of the region, CAF has committed to allocate $ 25 billion to green financing by 2026, representing an increase from 24% to 40% of the total approvals. Additionally, as announced at COP28 in Dubai, the institution will invest $15 billion by 2030 to enhance disaster risk management. Furthermore, it will allocate $1.25 billion in the next five years to fund projects that contribute to preserving, revitalizing, and promoting marine and coastal ecosystems in Latin America and the Caribbean.