FAQ

Answers to your questions

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General

What does RSCF want to achieve?

RSCF’s objective is to unlock private capital for investments in Forest Landscape Restoration (FLR).

Who, as a partner, is RSCF looking for?

Investors in Forest Landscape Restoration, i.e. fund managers and / or investment advisors to funds which are in the process of raising a new or managing an existing investment vehicle which invests in sustainable land use and FLR.

How do I get in contact, if I fulfill the criteria listed above and below?

If you are eligible, please contact us via info@restorationfacility.org.

Eligibility

In which countries or regions do I need to invest?

• All ODA-eligible countries
• Focus on Latin America, Africa and South-East Asia

Which sectors and activities are supported?

Forest restoration and protection, combined with sustainable land-use activities such as:

• Agroforestry and Silvopasture
• Sustainable forest management and sustainable plantation forestry on degraded lands
• Non-timber forest products
• Generation of carbon credits & other payments for ecosystem services
• Supply chain investments to support restorative activities

Which main criteria do partners need to fulfill to be supported?

• Novel strategies, business models or geographies
• 75% of fund investment volume is dedicated to eligible activities and markets
• Potential for replication and scalability of commercially viable projects

Is every fund or fund manager eligible?

No, additionally to funds needing novel strategies, business models or geographies, they need to prove the additionality of the RSCF support, by

• demonstrating how support will financially enable activities beyond business as usual
• demonstrating how investment strategy translates into positive E&S impacts
• ensuring that restored/ conserved forest ecosystems will sustainably maintain their beneficial functions
• demonstrating clear additionality for climate change mitigation and climate change adaptation

Which entities cannot be supported?

Any entity type or business model which does not invest into a portfolio of FLR aligned projects, e.g. standalone projects.

Which formal requirements do I need to fulfill to become a partner?

• E&S management and reporting framework
• Mechanisms for evaluation and mitigation of climate change risk and impact
• Financial and technical expertise
• Strategic focus and alignment to objectives of RSCF
• Local capacity and on-ground teams are desirable

Support and Support Lines

The following 3 support lines are available:
• Support Line 1 – Fund development as reimbursable grant
• Support Line 2 – Pipeline development as non-reimbursable grant
• Support Line 3 – Project development as reimbursable grant

How are the support lines connected?

SL 2 & SL 3 are provided under a single Cooperating Partner Agreement and not individually.

What is the size of the support/ co-financing?

• SL 1 is limited to USD 750,000 and is a reimbursable grant
• SL 2 & 3 are limited to USD 2,500,000 (with a 30 % non-reimbursable grant and 70 % reimbursable grant split)

Reimbursable grants required to be paid back at financial close.

What type of expenses can be covered?

Everything related to fund raising, fund establishment, pipeline development and project development (travel, legal costs, permits, structuring costs, studies, ESG related costs, etc.)

Can I apply for all three support lines?

Yes, but in two separate application processes where each will be judged on their standalone merits.

Can I apply only for support Line 2?

No, SL 2 & SL 3 are only available in conjunction, typically on a 30 %/ 70 % split in terms of funding volume.

I already receive other donor funding. Can I still apply?

Yes, but the RSCF Agent will ensure that no over-subsidization takes place and donor money is not matched with donor money.

What are the financial requirements for RSCF co-funding?

Matching of funds on a dollar for dollar basis. Every RSCF co-financed dollar must be matched with one dollar from the partner (not other donor funding).

Process

How does the corporation work?

Co-operation works through co-financing (matching of funds on a dollar for dollar basis) of fund development, pipeline development and project development costs.

Do I have to pay back my grant?

• SL1 is to be reimbursed at financial close of the fund (<18 months)
• SL2 is a non-reimbursable grant
• SL3 is to be reimbursed when the project reaches financial close (1.5-4 years)

What are the partners obligations during the contracting phase?

Reporting and proof of usage of funds on a quarterly basis.

How long does the application process usually take?

The application process usually takes around 6 months.

Complaints

Unhappy with RSCF?

Please direct all complaints to complaints@restorationfacility.org.