UNDP presents new initiative on integrated forest financing for Mesoamerica

News
ForestFlows COP30

Belém, Brazil, 19 November 2025 - At COP30 in Belem, the UN Development Programme convened with the governments of Germany, Costa Rica, Guatemala and Honduras to align plans for a new initiative to support nature, climate and rural livelihoods in forest territories.

Under the concept of ForestFlow, UNDP will support countries to integrate financial, commercial and digital instruments for forests, such as payments for environmental services, results-based forest finance (such as REDD+, and TFFF in the future), green credit lines, insurance schemes, and digital tools (for land monitoring and agricultural traceability), among others. Germany – through their International Climate Funds (IKI) – is interested to partner with UNDP to pilot this model in Mesoamerica. Under national policy frameworks, the national forest agencies of Costa Rica, Guatemala and Honduras – FONAFIFO, INAB and ICF respectively – will serve as anchors, leveraging their forest-financing schemes to mobilise private finance, working in consortium with UNDP.

During the COP30, high-level representatives from Germany, Costa Rica, Guatemala and Honduras met at the Forest Pavillion to announce the initiative, which will be designed during 2026. Lyes Ferroukhi, Manager of the UNDP Regional Hub for Latin America and the Caribbean, underlined the broader significance of this partnership: “We believe this strategic alliance with IKI fully aligns with our shared vision to advance the REDD+ agenda in the region and complements the achievements of the UN-REDD Programme, as well as our GCF portfolio and the regional platforms we are consolidating under the post-Seville FfD4 framework.”

Built on the understanding that climate action depends on people, ForestFlow will seek to empower local producers, Indigenous peoples, women, and rural youth in their dual roles of forest stewards and sustainable land managers. By combining forest financing, agricultural trade and digital tools, these local stakeholders can be genuine agents of change. ForestFlow will start in 2026 with the design of the country-led financial architecture and pilot initiatives, building upon the national schemes of forest incentives. 

 

Contacts

Josep Garí – Head, Climate, Forests and Land, UNDP josep.gari@undp.org
José Arturo Santos – Regional Technical Advisor, AFOLU Solutions, UNDP jose.arturo.santos@undp.org