Eligibility & Support
Eligibility &
Support
The Restoration Seed Capital Facility supports the development of early stage forest landscape restoration projects in developing countries to contribute to climate change adaptation and mitigation, halting biodiversity loss and the creation of sustainable livelihoods.
SL 1: Fund Development Support
Under the Support Line 1 the Facility supports fund managers in the FLR space during the fund raising and fund establishment phase. It is dedicated to first time fund managers and to existing fund managers who enter the FLR sector providing innovation to the market. Support Line 1 is a conditional grant limited to USD 750,000 which is used on a cost sharing basis to cover fundraising and fund establishment costs. The grant is supposed to bridge the liquidity gap during fund establishment and fundraising until the fund reaches first close.
Activities typically co-financed under SL 1 include:
- Fundraising costs (e.g. travel expenses)
- Marketing costs
- ESG related costs
- Establishment of local presence in ODA eligible countries
- Development of fund documents
- Legal set-up fees
SL 2: Pipeline Development Support
Please note that SL 2 & 3 are only available in conjunction with each other.
SL 2 supports fund managers in building a pipeline of early stage FLR aligned investment opportunities on a cost sharing basis. Fund managers are encouraged to assess impactful early stage project opportunities. SL 2 provides support in conjunction with SL 3 for a total amount of up to USD 2.5 million per partner. SL 2 is a non-reimbursable grant and accounts for 30 % of the total support volume.
Activities typically co-financed under SL 2 include:
- Training, coaching and workshops for local project developers
- Project identification (e.g., event participation, travel expenses)
- Pre-investment feasibility studies for early stage opportunities
- Studies for expansion into new countries, sectors and project types
SL 3: Project Development Support
Please note that SL 2 & 3 are only available in conjunction with each other.
SL 3 provides project specific co-financing to bring identified FLR projects to financial close. De-risking of the project development phase is the main objective of SL 3, ultimately unlocking private capital for FLR projects. The support is a conditional grant that is reimbursable and paid back once projects reach financial close.
Activities typically co-financed under SL 3 include:
- Due Diligence costs (legal, financial, market, etc.)
- Feasibility studies for project assessment
- Environmental, social and governance (ESG) risk analysis
- Independent technical and project assessment
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- SL1: Fund establishment and fundraising
- SL2: Identification and early assessment of project pipeline
- SL3: In-depth project assessment and preparation
- Want to know more about our Support Lines?
Fund Development: Support Line 1
SL 1 helps new fund managers in the FLR space during the fundraising stage. SL 1 is a conditional grant limited to USD 750,000 that is paid back once the fund reaches a first close.
Activities typically financed under SL 1 include:
- Fundraising costs (e.g. travel expenses)
- Legal set-up fees
Pipeline Development: Support Line 2
SL 2 supports funds and investment advisors to funds in building a project pipeline while at the same time delivering capacity-building at the local developer level.
SL 2 provides support in conjunction with SL 3 for a total amount of between USD 0.5 million and USD 2.5 million per partner. SL 2 is a non-reimbursable grant and accounts for 30% of the total contract volume. Activities typically financed under SL 2 include:
- Training, coaching and workshops for local project developers
- Project identification (e.g., event participation, travel expenses)
- Pre-investment feasibility studies
Please note that Support Lines 2 and 3 are only available in conjunction with each other and are not offered separately.
Pipeline Development: Support Line 3
SL 3 co-finances, with funds and investment advisors to funds, the development costs of getting seeded projects to full financial close.
SL 3 provides support in conjunction with SL 2 for a total amount of between USD 0.5 million and USD 2.5 million per partner. SL 3 accounts for 70% of the total contract volume and is a conditional grant that is reimbursable for projects that reach financial close. Activities typically financed under SL 2 include:
- Independent technical and project assessments
- Feasibility studies
- Financial risk analysis and project valuation
- Regulatory compliance and framework reviews
- Environmental, social and governance (ESG) risk analysis
Please note that Support Lines 2 and 3 are only available in conjunction with each other and are not offered separately.
- SL1: Fund establishment and fundraising
- SL2: Identification and early assessment of project pipeline & SL 3: Pipeline Development
Fund Development: Support Line 1
SL 1 helps new fund managers in the FLR space during the fundraising stage. SL 1 is a conditional grant limited to USD 750,000 that is paid back once the fund reaches a first close.
Activities typically financed under SL 1 include:
- Fundraising costs (e.g. travel expenses)
- Legal set-up fees
Pipeline Development: Support Line 2
SL 2 supports funds and investment advisors to funds in building a project pipeline while at the same time delivering capacity-building at the local developer level.
SL 2 provides support in conjunction with SL 3 for a total amount of between USD 0.5 million and USD 2.5 million per partner. SL 2 is a non-reimbursable grant and accounts for 30% of the total contract volume. Activities typically financed under SL 2 include:
- Training, coaching and workshops for local project developers
- Project identification (e.g., event participation, travel expenses)
- Pre-investment feasibility studies
Pipeline Development: Support Line 3
SL 3 co-finances, with funds and investment advisors to funds, the development costs of getting seeded projects to full financial close.
SL 3 provides support in conjunction with SL 2 for a total amount of between USD 0.5 million and USD 2.5 million per partner. SL 3 accounts for 70% of the total contract volume and is a conditional grant that is reimbursable for projects that reach financial close. Activities typically financed under SL 2 include:
- Independent technical and project assessments
- Feasibility studies
- Financial risk analysis and project valuation
- Regulatory compliance and framework reviews
- Environmental, social and governance (ESG) risk analysis
Please note that Support Lines 2 and 3 are only available in conjunction with each other and are not offered separately.
Entity type
- Fund managers or investment advisors to funds
- Raising a new or managing a current investment vehicle dedicated to sustainable land-use and FLR
- Standalone projects are not eligible for RSCF support
Geographical Scope
- All ODA-eligible countries
- Focus Latin America, Africa and South-East Asia
Sectors & Activities
Forest restoration and protection, combined with sustainable land-use activities, such as:
- Agroforestry and sylvopastoral systems
- Sustainable forest management and sustainable forestry on degraded lands
- Non-timber forest products
- Generation of carbon credits & payments for ecosystem services
- Supply chain investments to support restorative activities
E&S Management & Reporting | Climate Management
- Environmental and social risk management
- Environmental and social impact reporting framework
- Mechanism for evaluation and mitigation of climate change risk & impact
Investment Portfolio | Fund characteristics
- Novel strategies, business models or geographies
- 75 % of fund investment volume is dedicated to eligible activities and markets
- Potential for replication and scalability
- Development of a portfolio of FLR aligned bankable projects
Additionality rationale
- Demonstrate how support will financially enable activities beyond business as usual
- Demonstrate how investment strategy translates into postive E&S impacts
- Restored/ conserved forest ecosystems will sustainably maintain their beneficial functions
- Clear additionality for climate change mitigation and climate change adaptation
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Support Line 1
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SL 1 supports new fund managers in the FLR space during the fund establishment stage. SL 1 is a conditional grant limited to USD 750,000 that is paid back once the fund reaches a first close. The grant is supposed to bridge the liquidity gap during fund establishment and fundraising until the fund reaches first close.
Activities typically financed under SL 1 include:
- Fundraising costs (e.g. travel expenses)
- Marketing costs
- Development of fund documents
- Legal set-up fees
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SL 2
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SL 2 supports funds and investment advisors to funds in building a project pipeline. SL 2 provides support in conjunction with SL3 for a total amount of up to USD 2.5 million per partner. SL 2 is a non-reimbursable grant and accounts for 30 % of the total support volume. Activities typically financed under SL 2 include:
- Training, coaching and workshops for local project developers
- Project identification (e.g., event participation, travel expenses)
- Pre-investment feasibility studies
Please note that SL 2 & 3 are only available in conjunction with each other!
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100
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SL 3
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SL 3 co-finances developments costs to bring projects to financial close. SL 3 provides support in conjunction with SL2 for a total amount of up to USD 2.5 million per partner. SL 3 accounts for 70 % of the total support volume and is a conditional grant that is reimbursable for projects that reach financial close. Activities typically financed under SL 3 include:
- Due Diligence costs
- Independent technical and project assessment
- Feasibility studies
- Financial risk analysis and project valuation
- Regulatory compliance and framework reviews
- Environmental, social and governance (ESG) risk analysis
Please note that SL 2 & 3 are only available in conjunction with each other!