Investment in Forests and Sustainable Land Use Phase II (IFSLUII) Component 1

Investments in Forests and Sustainable Land Use - Phase 2 (IFSLU2) is a flagship programme under the Foreign, Commonwealth and Development Office's (FCDO) International Climate Finance (ICF).

IFLSU2 is a £500 million commitment over a 10-year period, with a first tranche of £195m starting in Financial Year (FY) 2023/24 with a planned end of 31st March 2028. This new commitment of ODA funding will build on a successful first phase of operations through Investments in Forests and Sustainable Land Use (IFSLU1) (£140m, 2015-24).

IFLSU1 worked with the private sector to develop and implement new approaches to business which balance commodity production, livelihoods and forest protection and mobilise investment in protection and sustainable use of forest resources. Results include over £1bn in private investment mobilised into sustainable agriculture, forest protection and restoration. This has improved management across 4.5m hectares of land, benefiting over 250,000 people, mainly smallholder farmers and rural communities.

IFLSU2 will be delivered through five linked components:

• Component 1 – Business incubation, pipeline development, business enabling conditions and demand-side measures. Interventions oriented towards catalysing forest-friendly enterprises in forest landscapes in East Africa, West and Central Africa, Latin America and South-East Asia.
• Component 2 – Enhanced support for smallholder farmers. Interventions oriented towards reaching smallholders at scale in order to support their transition to sustainable production in ways that deliver strong developmental and social outcomes.
• Component 3 – Business and market development in the Congo Basin. Interventions oriented towards building the fundamental enabling conditions, capabilities, and structures to enable business-led sustainable production in Congo Basin countries.
• Component 4 – Policy support to catalyse transformational change and action at scale. Interventions oriented towards building political momentum, action, collaboration, demand shifts and policy change through global and regional level collaboration.
• Component 5 – Monitoring, evaluation, learning (MEL) and knowledge: Independent monitoring and evaluation to support programme-wide learning, inform management decisions, programme strategy and delivery and strengthen evidence.

This is expected to mobilise £2bn in private investment; directly benefit 0.5m people, mainly small farmers and poor rural communities; and improve management across over 10m ha of land.

This Early Market Engagement (EME) will inform the market of the upcoming programme and focus on the specifics of Component 1 - business incubation. In addition, it will seek market perspectives on the management of Component 2 (smallholders).

This is not a call to competition or tender at this time.