Case

The Reforestation Fund

SDGS
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Facts
Year 2026
Sector Sustainable Food Systems
Financial instrument Equity
Fund Impact Fund Denmark
Current investment DKK 128m
Regions Latin America

The Reforestation Fund (TRF) restores degraded land and former rainforest areas across South America through large-scale reforestation and sustainable forest management. The fund acquires land previously used for cattle grazing and restores it by protecting native ecosystems and planting new forests, helping address deforestation and biodiversity loss in one of the world’s most important natural regions.

Deforestation in South America is largely driven by the expansion of cattle farming, which has contributed to the loss of natural habitats, declining biodiversity and significant carbon emissions. The fund’s strategy focuses on restoring degraded land in Brazil and converting former grazing areas into productive and biodiverse forest landscapes.

At full scale, the fund aims to restore and reforest approximately 267,000 hectares of land. Around half of the area is dedicated to the protection and restoration of native forests and natural habitats, while the remaining land is managed as sustainable commercial forestry that generates income from timber and verified carbon credits.

In addition to restoring ecosystems, the initiative is expected to sequester substantial amounts of carbon, create local employment and support long-term sustainable economic development. The project demonstrates how climate action, biodiversity protection and commercial returns can be combined through large-scale nature-based investments.

Read more here.