New large-scale conservation funding model takes shape

From the newsletter

Gabon has partnered with international donors to launch the Gabon Infini Project Finance for Permanence (PFP) initiative. This is a decade-long conservation financing plan to safeguard 34,000 km² of the Congo Basin rainforests while promoting a nature-based economy. This is the second such deal in Africa, after Kenya. 

• The initiative is funded by $94 million from donors, including the Global Environment Facility and the Bezos Earth Fund, with $86 million of government funding in conservation and community development investments over ten years.

• Unlike traditional grants, the PFP model commits funds over a decade or more and only releases funds if legally binding conservation action is met. This can be the change or implementation of policies and more.

More details

• “With long-term resources, we are guaranteeing the future of our vital ecosystems and investing in the livelihoods of our communities,” said Maurice Ntossui Allogo, the former Minister of Forests in Gabon. Ryan Demmy Bidwell, global director for PFPs at The Nature Conservancy, added that Gabon’s success shows how long-term, performance based financing can secure climate-critical landscapes.

• The Gabon Infini PFP will also establish community enterprise funds to generate sustainable revenue for local communities. The initiative builds on Gabon’s previous conservation finance innovations, including a 2023 debt-for-nature swap that refinanced $500 million in loans and funded coastal preservation. The new PFP intends to increase protected rainforest coverage from 15% to 30%.

• Project Finance for Permanence (PFP) is a model for long-term conservation funding that ensures both full financial backing and the policy measures needed to sustain protected areas indefinitely. Unlike other grants, PFPs secure all the resources necessary to achieve specific conservation goals using legal and policy changes that guarantee lasting impact.

• A PFP begins when interested parties come together to define large-scale, long-term conservation objectives. A formal assessment follows to determine whether the country has the political will and enabling conditions to support a PFP. This assessment identifies gaps and areas requiring additional investment to prevent wasted effort or resources.

• If feasible, partners form a coalition to develop the PFP’s components, including a conservation plan and a fundraising target. The financial gap between existing funding and what is needed is quantified and strategies such as carbon taxes or other sustainable finance mechanisms are explored to fill it. Donor pledges are made but are withheld until all legal and financial conditions, known as closing conditions are met. 

• Once a closing agreement is signed, the funds are administered independently and disbursed over time. Release of funding is conditional on performance-based milestones, such as creating new protected areas or achieving zero net loss of habitat, which motivates all partners to meet targets. Over time, governments gradually assume more of the conservation costs, drawing on domestic revenue sources, until they largely or fully sustain the initiative themselves.

• ARPA for Life in Brazil is the largest global example of PFP. It funded over 60 million hectares of Amazon protected areas, including six million new hectares. In Africa, Kenya and Namibia are currently in talks to finalise deals on this model of conservation funding. Both countries are working with the Nature Conservancy and conservation stakeholders to develop PFP.

Our take

• PFPs thrive in areas with strong political support and prior experience in managing large scale conservation funds.

• To increase the chance of getting support, the goal of a PFP should align with the country’s national and international environmental commitments and address major threats to its environment.