EDFI Carbon Sinks Program to Support DEG’s Investment in The Reforestation Fund I
Financing forest restoration and sustainable timber to deliver climate and biodiversity impact
Brussels, Belgium – 6 May 2026 – EDFI Management Company (EDFI MC) supports, through its EDFI Carbon Sinks guarantee program, an EFSD+ guarantee funded by the European Union, for DEG’s equity investment in The Reforestation Fund I (TRF I), managed by the BTG Pactual Timberland Investment Group (BTG Pactual TIG). The fund aims to restore deforested and degraded land, enhance biodiversity and contribute to climate mitigation, while supporting sustainable economic activity in its target countries.
TRF I is a fund that will acquire deforested and degraded lands and manage them under a dual strategy. On around 50% of the acquired land, the fund will restore and permanently protect natural forest, while the remaining 50% will be used to establish FSC‑certified commercial timber plantations, primarily eucalyptus. Timber from these plantations will be sold to the processing industry, with a focus on long‑lived wood products such as furniture and buildings that store carbon over the long term. Where appropriate, the fund may also invest in processing facilities such as sawmills or veneer mills to strengthen local industries and value chains.
The EDFI Carbon Sinks guarantee program is a joint initiative of the members of the EDFI Association and EDFI MC under EFSD+, the financing arm of the EU Global Gateway. It is designed to de‑risk and scale up equity investments by European development finance institutions and their co‑investors in forestry, regenerative agribusiness and other nature‑based businesses that develop high‑integrity carbon sink projects. By providing portfolio guarantees, the program aims to mobilise additional private capital into emerging and developing economies, accelerate climate mitigation and adaptation, and deliver measurable benefits for biodiversity and local communities.
DEG and EDFI Management Company signed a cover under the EDFI Carbon Sinks program for DEG’s equity investment in TRF I and is expected to play a critical role in enabling them to support the fund and crowd in additional investors.
TRF I will generate high‑quality forest carbon credits (verified emission reductions) alongside sustainable timber revenues. By combining large‑scale forest restoration, permanent conservation areas and certified commercial plantations, the fund aims to deliver climate benefits through both carbon sequestration and avoided emissions, while also supporting biodiversity and local economic development.
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
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.7 billion DEG is one of the largest private-sector development financiers. As an impact and climate investor it accompanies companies that are addressing transformation and aiming to seize their opportunities. DEG’s customers not only receive financing and advisory solutions tailored to their needs: they can build on DEG’s market knowledge, impact and climate expertise and international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs.
Learn more: www.deginvest.de
About BTG Pactual Timberland Investment Group (BTG Pactual TIG)
The BTG Pactual Timberland Investment Group (BTG Pactual TIG) is one of the world’s largest timberland investment managers, managing US$ 7.5 billion in assets and commitments and 3.0 million acres under management throughout the U.S. and Latin America. TIG has approximately 160 professional staff and an on-the-ground presence through 23 offices across the Americas, bringing local, regional, and global experience to bear on the careful management of our clients’ investments (as of December 31, 2025).
