Proparco supports Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investment, which is gathering a coalition of investors to support developments in regenerative agriculture, agroforestry, and sustainable forestry in emerging markets. These targets are closely aligned with Proparco’s recently developed Natural Capital strategy.
After successfully establishing and deploying the Land Degradation Neutrality Fund (LDN) in partnership with the United Nations Convention to Combat Desertification (UNCCD), which was supported by AFD, Proparco’s parent company, as initial investor, Mirova received support of key investors for the Mirova Sustainable Land Fund 2 (MSLF2), which reached its first closing and commenced operations in 2024.
In addition to Proparco and FMO, the Dutch development finance institution, the coalition comprises a mix of public, private, and philanthropic investors combining their resources through a blended finance approach: the SDG Impact Finance Initiative (SIFI), which plays a key catalytic role as the first junior investor, alongside institutional investors Abeille Assurances, Allianz France, and BNP Paribas Cardif. Additionally, the Rainforest Alliance will develop a project pipeline and support high-quality initiatives on the ground as part of their strategic partnership established with Mirova earlier this year.
Sustainable land management and restoration are essential for addressing the challenges of climate change, biodiversity, water, and food security. Attracting more capital to support large-scale projects is crucial, particularly in emerging markets. This maturing sector, driven by increasing demand for sustainable food and strengthened regulation of supply chains, is fostering the emergence of a new asset class.
The MSLF2 fund, building on the pioneering experience of the LDN fund, is structured as a blended finance vehicle, combining public and private capital to encourage investment in sustainable land management. It aims to support the transition and decarbonisation of agricultural and forestry value chains while generating financial returns and positive impacts on climate, biodiversity, water, and social inclusion, particularly for women in emerging countries, with a focus on sustainable forestry, agroforestry, and regenerative agriculture.
The MSLF2 fund is the first investment to fall within the scope of Proparco's Natural Capital strategy. As such, it fits perfectly with the first two priorities of this recently adopted strategy. With this strategy, Proparco intends to finance projects with both climate and biodiversity co-benefits in 3 main areas: the conservation, restoration and sustainable timber production of forests and mangroves; the sustainable use of land in agriculture and wetlands (through regenerative agriculture and agroforestry); as well as sustainable and regenerative practices for the Oceans.
Through its support to MSLF2, Proparco is aiming to catalyze further investors in order to support Mirova’s fundraising efforts. Additional foundations, government agencies, bilateral development finance institutions, multilateral funds, and private investors are expected to join the investor pool by the end of 2025.
Anne-Laurence Roucher, Head of Private Equity & Natural Capital, Mirova: “Fostering collective intelligence and collaboration among all stakeholders is vital to accelerate the shift from nature-dependent economic value chains to a more sustainable model that enhances the incomes and rights of local communities. This inaugural coalition is a promising sign for financing sustainable land use, and I would like to express my heartfelt gratitude to our partners for their trust in our longstanding expertise in natural capital.”
Françoise Lombard, CEO, Proparco: “Proparco is delighted to support the MSLF2 fund launched by Mirova, a trusted partner. This fund represents a remarkable initiative, aiming to deliver transformative, measurable impacts through projects in primary agriculture, forestry, and downstream value chains. Its goals align with our shared vision of biodiversity conservation, climate change mitigation and adaptation, economic empowerment for local communities, and gender equality. This investment also aligns with Proparco’s strategic focus on nature-based solutions, fostering positive and lasting impacts for both the planet and its people. By committing to MSLF2, Proparco reaffirms the AFD Group’s dedication to sustainable land use and aspires to catalyse further investments into this impactful initiative.”