Our strategy

Canopy Trust Our Strategy Payments For Environmental Services

Payments for environmental services

Canopy Trust wishes to implement the standardized, centralized PES approach developed by CAFI, incentivizing communities and landowners to preserve forest ecosystems.

PES will be results-based, paying for verified deliverables in terms of new agriculture and agroforestry plantations. By acting directly at community level, through PES-supported plantations, Canopy Trust will contribute to derisking private sector processing. This will boost efficiency and create added value, paving the way for unique partnerships and deforestation-free value chains.

Technical assistance and direct investment

Canopy Trust will provide technical assistance, grant and concessional equity/debt to support early stage projects that are in their initial of development. These financial tools will target project and companies working on various solutions to stop deforestation.
 
This should enable the development of “proof of concepts” that can be scaled-up, leading to the creation a pipeline of bankable projects, complementing more traditional investments by providing catalytic funding to de-risk projects.

Canopy Trust Notre Strategie Assistance Technique Et Investissement Direct
Canopy Trust Our Strategy Fund Investments

Fund investments

Canopy Trust will provide junior tranches through partnerships with existing funds and asset managers.
 
With a blended finance approach, Canopy Trust will use concessional capital to de-risk and catalyze significant additional private sector investments in sustainable agriculture and forestry, cooking energy and renewable energy and deforestation-free agricultural value chains.

Strategy of Canopy Trust

Canopy Trust Our Strategy In Africa

Investment Sectors

Sustainable agriculture and forestry

  • Agribusiness/ deforestation free / small holder farmers
  • Forests
  • Financing facilities of REDD+ nested projects
  • Agroforestry and agribusiness companies
  • Sustainable forest concessions companies
  • Equity of DEVCOs or SPVs for Integrated agriculture / forests nested projects

Renewable energy, including alternative solutions to unsustainable cooking

  • Energy
  • Water
  • Infrastructure
  • Charcoal companies
  • Cookstove companies
  • Cooking energy and renewable energy companies
  • Water access / irrigation companies

Economic alternatives to deforestation

  • Microfinance
  • Tech-driven impact for poorest communities
  • Financial intermediaries
  • Eco-tourism companies
  • Deforestation-free Value chains
  • Sustainable economic revenue alternatives to deforestation for communities