Photo: Divine Chocolate
CFC projects addressing conservation and climate change CFC has long recognized that socioeconomic progress
Moringa Agroforestry Fund
cannot come at the cost of environmental degradation
On the adaptation side, CFC participates in the Moringa
and it is also increasingly clear that climate change in
Agroforestry Fund (Moringa) to invest in agroforestry pro-
particular poses a challenge to livelihoods, thus creating
jects in Africa and Latin America which can commercially
a negative feedback mechanism for development. The past
compete with deforestation drivers (like cattle ranching, crop
axiom of “grow first, clean up later”, cannot apply any more.
farming and timber harvesting). At the same time Moringa
Environmental restoration and socioeconomic progress
investments are required to have a demonstrable positive
can be complementary, and CFC seeks to achieve such
impact on the environment and the livelihoods of local
complementarity at a project level. A few examples from
populations, while generating a clear positive impact on
past and present projects are shown below.
local populations and the environment. The result is reduced risks to livelihoods and stabilised incomes. The CFC supports
The conservation of the forest of Ashaninka communities, Peru
this initiative as an investor and manager of Moringa’s tech-
The Ashaninkas are the indigenous people living in the Ene
than 15 projects at an amount of EUR 4 million.
nical assistance facility, ATAF, which has implemented more
river valley of the Peruvian Amazon, in the Satipo province. The project targets establishing the production of premium
Olivado
coffee and cocoa in Ashaninka areas under an agroforestry
Since 2019, the CFC has been working with Olivado, a
system, and marketing and sale of products to premium
Kenyan exporter of organic and fair trade avocado oil, to
markets. The project provides support to the Ashaninka cocoa
finance its purchase of inputs from smallholder farmers. At
and coffee farmers in increasing the quality and yield per
its processing plant in Kenya, the company has installed a
hectare of their produce. Cocoa is sold directly to premium
biogas facility which converts fruit waste into energy and
markets in Australia and US under the brand name of Living
the CFC is now considering financing a similar facility for
Earth. The pilot project has been financed using an innovative
Olivado’s plant in Tanzania. From a pure business perspec-
Development Impact Bond (DIB) financing
tive, this means a more stable energy supply while the
scheme set up by the CFC in collaboration
climate impact may be incidental. However, for the CFC as
with Schmidt Family Foundation, Rainforest
an impact investor, this is a particularly attractive investment
UK, and KIT Royal Tropical Institute.
opportunity as it may increase rural incomes while lowering the demand for fossil fuels.
22 | Common Fund for Commodities Annual Report 2020
