Proparco’s investment in AXA IM Alts’ Natural Capital & Impact strategy backed by EDFI Management Company
EU-funded EDFI Carbon Sinks guarantee de-risks Proparco’s commitment to a nature-based investment strategy targeting high-integrity carbon sinks and biodiversity outcomes.
Brussels, 8 December 2025 – EDFI Management Company (EDFI MC) has issued a guarantee under the EDFI Carbon Sinks programme to back Proparco’s investment in AXA IM Alts’ Natural Capital & Impact strategy, which targets large-scale nature-based solutions in emerging markets. The guarantee de-risks Proparco’s equity investment, helping to mobilise additional public and private capital towards projects that generate high-integrity carbon credits and protect and restore biodiversity.
The EDFI Carbon Sinks programme is funded by the European Union through the European Fund for Sustainable Development Plus (EFSD+) under the EU’s Global Gateway strategy. By reducing the long-term risk profile of Proparco’s commitment, the programme supports the development of a robust carbon sinks asset class and contributes to EU priorities on climate mitigation, ecosystem restoration, and sustainable livelihoods.
Fadila Hamdane, Chief Partnerships Officer, EDFI Management Company stated “With this guarantee under the EDFI Carbon Sinks programme, EDFI Management Company backs Proparco’s commitment to AXA IM Alts’ Natural Capital & Impact strategy and helps to de-risk a critical investment in nature-based solutions. By reducing risk for a leading European development finance institution, we aim to crowd in additional capital and accelerate the scale-up of high-integrity carbon sink projects that deliver climate, biodiversity and livelihood benefits in emerging markets.”
Through its Natural Capital & Impact strategy, AXA IM Alts finances companies and projects that address the drivers of deforestation, restore degraded ecosystems, and strengthen conservation, with results quantified through the issuance of high-integrity carbon credits and complementary environmental and social co-benefits. The strategy combines strategic equity investments in companies that support the natural capital ecosystem with direct project financing for land-based and other nature-based activities.
With EDFI MC’s guarantee in place, Proparco joins IFC and DEG as development finance investors in the strategy, increasing its capacity to invest in high-impact projects across emerging markets. The partnership aims to accelerate investment in natural capital, expand access to climate finance for frontier and underserved markets, and foster long-term, sustainable business models for carbon sink projects.
EDFI Carbon Sinks is a dedicated blended finance programme managed by EDFI Management Company to support investments in forestry, land restoration, regenerative agriculture, and other nature-based solutions that create and safeguard carbon sinks. The programme provides guarantees to European development finance institutions to help them take earlier and larger positions in natural capital funds and platforms, thereby crowding in private investors and other public financiers.
By backing Proparco’s commitment to AXA IM Alts’ Natural Capital & Impact strategy, EDFI Carbon Sinks reinforces a growing coalition of public and private partners working to scale high-quality carbon projects and biodiversity-positive investments. The initiative aligns with international efforts at COP30 to halt deforestation, restore nature, and channel climate finance to emerging and developing economies.
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/
