Private forProfit Sources

Private for-profit sources range from mobilising households to invest in restoration to investments from large international corporations. Household investments will have an effect only if the projects offer short-term benefits with an acceptable level of risk. These benefits can be an increased income for households or indirect payments in, for example, alternative livelihoods, roads, schools, and so on. On the other hand, a more grant-type of financing from large private companies like dam, oil, plantation, and mining companies can be mobilised to pay for forest restoration as compensation for environmental disruption they may cause. This motivation may also come from business ethics and thus be part of a company's public relations campaign. An example is where environmental NGOs are invited by a plantation company to restore part of their land according to standards compatible with forest landscape restoration. Lastly, engaging conventional capital markets by channelling capital toward forest management and restoration has potential. For example, Xylem Investment Inc. is an international timber investment company based on equity investments in plantation forests in developing countries that attracts U.S. pension funds, insurance companies, and others that prefer safer and steadier-growth investments. This company manages forest assets worth $235 million. Another example is Precious Woods, an international timber company that focusses on sustainably produced timber in Latin America. Funding from these sources could also be mobilised for forest landscape restoration.

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