The WALD Innovation Facility, a grant-making initiative managed by IUCN and funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) via KfW, has announced six flagship projects focused on combining carbon sequestration with biodiversity conservation and community benefits. The Facility provides grants of up to €1.5 million per project, addressing a critical financing gap for early-stage nature-based initiatives and helping them attract private investment. Following a global call that received nearly 200 applications, six projects were selected based on their scalable, high-integrity approaches.
The Facility emphasizes high standards for carbon, biodiversity, and social impact. Its technical expertise ensures that all grantees deliver projects that surpass carbon standards while promoting meaningful community engagement and equitable benefit sharing. Using IUCN global frameworks and tools, the projects prioritize the use of native species, including those listed as Critically Endangered, Endangered, or Vulnerable, in their restoration activities.
By integrating climate mitigation, biodiversity conservation, and livelihood improvements, the WALD Innovation Facility sets ambitious, science-based, and inclusive benchmarks for measurable impacts. It also supports the mainstreaming of nature into policies, corporate strategies, and regulatory frameworks, reinforcing the role of biodiversity in international carbon markets and contributing to the Paris Agreement and the Kunming-Montreal Global Biodiversity Framework.
The launch of these six projects demonstrates the Facility’s commitment to bridging innovation and market readiness, establishing high standards of integrity, inclusivity, and effectiveness for international carbon initiatives. With rigorous environmental and social safeguards, the Facility illustrates how nature-based carbon projects can simultaneously protect ecosystems, empower communities, and mobilize sustainable finance.
The Pahang Peatland Restoration Project in Malaysia will restore degraded peatlands, mitigate climate change, enhance ecosystem resilience, protect endangered species, and improve community resilience. The Coffee Agroforestry Project in Minas Gerais, Brazil, will support 1,000 smallholder farmers in adopting agroforestry systems, promoting long-term carbon sequestration, biodiversity restoration, sustainable agriculture, and new income streams.
The Zanzibar Community Restoration Project in Tanzania will scale up mangrove and forest restoration across 3,500 hectares, ensuring sustainable livelihoods for women and indigenous communities while protecting marine biodiversity. In Indonesia, the Batang Asai Forest Restoration Project will increase vegetation cover to reduce GHG emissions, protect species, and provide local communities with climate resilience and carbon revenue opportunities.
The EAGLE Restoration Project in the Philippines will transform deforested areas into food and medicine forests, mitigating threats to watersheds and empowering indigenous communities in land management. In Tunisia, the Empowering Coastal Communities through Seagrass Restoration and Fisheries Sustainability Project will restore marine ecosystems, implement sustainable fishing practices, and enhance climate resilience while providing sustainable livelihoods for coastal populations.
Together, these six flagship projects exemplify how well-designed, nature-based carbon initiatives can deliver measurable benefits for climate, biodiversity, and community livelihoods on a global scale.
