The FAF was founded in December 2024 by the International Union for Conservation of Nature (IUCN) and the KfW Development Bank. The Federal Ministry for Economic Cooperation and Development (BMZ) initially provided start-up funding of 19 million euros to finance up to 20 projects in Central America and Ecuador over a period of six years.
Juan Carlos Navarro, Environment Minister of PanamaPresident Pro Tempore of the Central American Commission for Environment and Development (CCAD) and President Pro Tempore of the Forum of Ministers of the Environment of Latin America and the Caribbean, stated: “For Latin America, the Facility represents an opportunity not only to restore our forests, but also to create green jobs, strengthen community resilience and celebrate the leadership of indigenous peoples and local communities. By restoring degraded areas, we protect water, food security and the natural heritage that feeds our people. Today we send a clear message: Latin American nations will continue to support and lead the global movement for forest restoration and climate action.”
Through open calls for proposals, carried out in close collaboration with the relevant national authorities and in accordance with their priorities, the FAF will invite civil society organizations, public institutions and private sector actors to submit project proposals that integrate the restoration, conservation and sustainable use of forest landscapes. This approach aims to strengthen biodiversity, improve resilience to climate change and support sustainable livelihoods.
“Latin America is home to the world's largest area of tropical forests, which are critical for climate regulation and biodiversity protection and provide livelihoods for millions of people, including indigenous peoples and rural communities. However, forest degradation and fragmentation threaten ecosystems and human well-being. With the launch of the Forest Action Facility, we are taking a decisive step to advance the restoration of forest landscapes in Latin America,” said Dr. Gretel Aguilar, IUCN Director Generalduring the launch event. “By restoring these forests, we not only protect biodiversity and stabilize the climate – we also invest in people, their rights and their opportunities. Together we can build a future where humanity thrives and nature is our strongest ally.”
The body was established as an independent, not-for-profit body under UK law and ensures transparency and accountability through multi-tiered audits. landscape level Impacts are measured using international monitoring standards, tracking restored forest areas, trees planted and CO₂ recorded and supports local communities.
The Facility is designed as an open platform and welcomes contributions from other governments, foundations and companies committed to promoting recovery across Latin America. Specific agreements can be tailored to reflect particular approaches or ownership structures.
“The Forest Action Facility is designed to foster true partnerships and mobilize resources for restoration. “We warmly invite other governments, foundations and private actors to join this open platform through future calls for proposals and help us expand the reach and impact of forest landscape restoration across Latin America and beyond,” noted Claudia Arce, KfW Regional Director in Latin America and the Caribbean.
For the Central America Financing Window, the Organization of American States (OAS) will serve as the Facility's policy partner, supporting its member states in accessing finance and facilitating participation, while helping the Facility identify high-priority forestry investments.
“FAF support will not only reverse deforestation trends, but also help restore vital landscapes while supporting rural communities in creating jobs, investments and income opportunities related to ecosystem management. We look forward to serving as an important link for countries in the region to the Forest Action Facility.” noted Mark Lambrides, Director of the Department of Sustainable Development at the OAS.