The forest finance theme provides an overview of forest finance and forest goals; updates on available data and recent policies to channel finance to the forest sector; and an assessment of the role of public and private finance, and carbon markets for forest finance.

Under this theme, we assess how progress in the past year has advanced the 2030 global forest goals, the extent to which current finance is sufficient for meeting these goals, and where gaps remain. The Theme 3 assessment also explores new forest finance-related areas, including public sector governance mechanisms, and direct finance mechanisms for Indigenous Peoples and local communities. This theme builds on previous NYDF Progress Assessments of Goals 7, 8, and 9.

Building blocks that are essential for finance to align with forest goals

Finance for forests is not on track to meet 2030 goals. It will cost up to USD 460 billion per year to protect, restore, and enhance forests on a global scale. Currently at USD 2.3 billion per year, funding for forests must increase by 200 times current levels. Less than 1% of the finance needed is currently being met. 

Pledges made in 2021 demonstrate increasing ambition. If fully delivered, they cwould quadruple annual finance for forests from 2021-25 to USD 9.5 billion. Yet, funding would still need to increase by up to 50 times to meet investment needs. Forest finance needs to come from public and private sources, and through a variety of mechanisms, including new finance and shifting grey finance to green.  

Grey and green public finance, compared against total costs to protect and restore forests, in billion USD per year