Impact Fund Denmark’s Investment in The Reforestation Fund I Supported by EDFI Carbon Sinks Program
Scaling forest restoration, sustainable timber and climate action through nature-based solutions
Brussels, Belgium – 8 May 2026 – EDFI Management Company (EDFI MC) supports through its EDFI Carbon Sinks guarantee program, an EFSD+ guarantee funded by the European Union, for Impact Fund Denmark’s USD 20 million investment in The Reforestation Fund I, LP (TRF I). The fund will transform large areas of previously deforested and degraded cattle pasture into a combination of sustainable commercial tree farms and restored natural forests, contributing to climate mitigation, biodiversity and local economic development.
TRF I, managed by BTG Pactual Timberland Investment Group (TIG), targets approximately 267,000 hectares of land, with around 50 percent designated for sustainable tree plantations and 50 percent for permanent conservation and ecological restoration. Revenue will be generated from sustainable timber sales and the issuance of verified carbon credits.
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 investments in forestry, regenerative agribusiness and other nature‑based businesses that develop high‑integrity carbon sink projects, mobilising additional private capital and delivering benefits for biodiversity and local communities.
The guarantees provided under the EDFI Carbon Sinks programme reduce the investment risk for Impact Fund Denmark, enables early‑stage participation in a high‑risk market and scales up its total commitment to TRF I. TRF I is expected to sequester around 36 million tonnes of CO₂ over 17 years of operation.
The fund is also expected to generate meaningful social and community benefits through 2,700 local job creation per year and training in rural areas, especially in forest management and wood product manufacturing. Community engagement is integrated into the approach to ensure local participation and long‑term social value.
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/
