Carbon Sinks Program, managed by EDFI MC,supports DEG’s USD 20 million investment in Climate Asset Management’s Nature Based Carbon Fund

Brussels, 10 March 2025 – EDFI Management Company (EDFI MC) announced today its support for DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH’s – USD 20 million equity investment in the Nature Based Carbon Fund, managed by Climate Asset Management through its guarantee program, Carbon Sinks. This initiative aims to foster carbon sequestration projects and promote sustainable land management practices across Africa, Asia and Latin America.

The EDFI Carbon Sinks program is an initiative under the European Fund for Sustainable Development Plus (EFSD+), launched by the EU and European Development Finance Institutions (EDFI) as part of the Global Gateway climate mitigation efforts. This program received €366 million in EFSD+ support, to be managed by EDFI MC. It aims to mobilize up to €4 billion in investments for forestry and other nature-based climate projects in developing and emerging countries.

Carbon Sinks focuses on scaling up equity investments in projects that generate high-quality carbon credits and deliver substantial environmental and social benefits. These projects include natural forests and marine ecosystems, outgrower schemes, smallholder forestry, regenerative agriculture, blue carbon ecosystems, sustainable plantation forestry, and forest-related product processing for prolonged carbon storage in emerging markets. 

“EDFI MC is committed to scaling up investment in climate mitigation and adaptation” said Rodrigo Madrazo, CEO of EDFI Management Company. “We are excited to have DEG as the first partner under Carbon Sinks initiative and that we work with them to enhance the impact of the Nature Based Carbon Fund.”

DEG’s investment in the Nature Based Carbon Fund which is managed by Climate Asset Management, will help deliver significant development impact by removing and avoiding greenhouse gas (GHG) emissions while also building climate resilience, protecting biodiversity, and improving the livelihoods of local and indigenous communities. This investment contributes to several Sustainable Development Goals (SDGs), including SDG 13 (Climate Action), SDG 15 (Life on Land), and SDG 10 (Reduced Inequalities).  This partnership aligns with the EU’s broader climate action goals and contributes to building a more sustainable and resilient future.

About EDFI Management Company:

EDFI MC is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit  www.edfimc.eu.

EDFI Carbon Sinks is a joint guarantee programme designed by the members of the EDFI Association and EDFI MC under EFSD+, the financing arm of EU Global Gateway. The programme is designed to support European Development Finance Institutions (EDFIs) and their private and public co-investors to scale up equity investments in forestry and regenerative agribusiness companies investing in carbon sink projects. More information can be found here: https://edfimc.eu/what-we-do/edfi-carbon-sinks/

About DEG:

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is a German development finance institution that invests in private sector companies in developing and emerging markets. DEG provides long-term financing and advisory services to support sustainable economic growth and improve living conditions in its partner countries. Learn more: www.deginvest.de

About Climate Asset Management:

Climate Asset Management was formed in 2020 as a joint venture of HSBC Asset Management and Pollination, with the ambition to grow the world’s leading asset management company dedicated to natural capital. It aims to provide investment solutions that are good for nature, people, and our planet. Climate Asset Management’s investment strategies seek to work across landscapes to build resilience whilst generating returns. Through its Nature Based Carbon Strategy, it aims to unlock the supply of high impact carbon credits for corporates and investors seeking to achieve net zero. Through its Natural Capital Strategy, it aims to deliver attractive, long-term risk return outcomes and create impact at scale by protecting and restoring vital biodiversity. Learn more: www.climateassetmanagement.com