KfW promotes global forest conservation

Around one million animal and plant species could become extinct within the next few decades. Entire ecosystems around the world are becoming imbalanced. At the World Conservation Congress (WCC) of the International Union for Conservation of Nature (IUCN) from 9 to 15 October 2025, more than 9,000 representatives of the global conservation community met in Abu Dhabi, with another 1,000 joining online to discuss ways out of the crisis. Among them: the KfW Development Bank, which sent out a strong signal for international forest conservation.

Saving forests, securing the future – KfW and IUCN launch Forest Action Facility

The forests of Latin America are under pressure: deforestation, slash-and-burn practices and climate change are endangering unique ecosystems and thus the livelihoods of millions of people. At the WCC, KfW and IUCN therefore presented a new joint instrument that offers hope: the Forest Action Facility (FAF).

The initiative pools international funding and expertise to restore destroyed forest landscapes in Central and South America. It is financed by the Federal Ministry for Economic Cooperation and Development (BMZ), managed by KfW. Together with IUCN, both are responsible for operational management. The aim is to support up to 20 projects over the next six years – ten of them in Central America and another ten in Ecuador. Further financing is also planned, for example for Africa. The FAF will also collaborate with interested private sector partners, for example to promote conservation-effective practices and respective investments in the cocoa and coffee supply chains.

The approach to how funds are distributed is new: the FAF works with open tenders that are aimed at local and Indigenous Peoples' organizations, municipalities or companies. The aim is to support projects that have a positive impact on both the environment and society – for example, through reforestation, agroforestry or the sustainable use of forest products. "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 in which humanity thrives with nature as its strongest ally," said IUCN Director-General Dr. Grethel Aguilar at the FAF launch in Abu Dhabi. By her side: Panama’s Environment Minister Juan Carlos Navarro and representatives of Indigenous Peoples in Latin America.

Strong partnership with IUCN

The IUCN, founded in 1948 on the initiative of UNESCO, now unites more than 1,400 member organizations – including States, government agencies, NGOs and Indigenous Peoples' organizations. Although not an IUCN member, KfW has been working closely with the organization since 2015 on the basis of a cooperation agreement – with great success, as evidenced by the growing tiger populations in South Asia. During the congress, the cooperation agreement between IUCN and KfW was renewed – a sign of mutual confidence and continuity in cooperation.