Mirova mobilises a blended finance coalition for its second-generation fund dedicated to sustainable land use in the global south
February 06, 2025
Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing, is gathering a coalition of committed investors and partners to support investments in regenerative agriculture, agroforestry, and sustainable forestry in emerging markets.
After successfully establishing and deploying the Land Degradation Neutrality Fund (LDN)1 in partnership with the United Nations Convention to Combat Desertification (UNCCD), Mirova is pleased to announce the support of key investors for the Mirova Sustainable Land Fund 2 (MSLF2)2, which reached its first closing and commenced operations in 2024.
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 crucial catalytic role as the first junior investor, alongside institutional investors Abeille Assurances, Allianz France, and BNP Paribas Cardif. This coalition also includes development finance institutions FMO and Proparco, which intend to commit investments for the forthcoming next closing.
Additionally, the Rainforest Alliance will help creating a robust project pipeline and support high-quality initiatives on the ground as part of the strategic partnership established with Mirova. Together, they aim to amplify locally led Nature-based Solutions, and especially agroforestry projects that deliver significant benefits for climate, biodiversity, and local communities through targeted impact investing initiatives across Africa, Latin America, and Asia.
Sustainable land management and restoration are essential for addressing the challenges of climate change, biodiversity, water, and food security. It is crucial to attract more capital to support large-scale projects, particularly in emerging markets, where blended finance plays a key role in mobilising funds from institutional investors through risk mitigation mechanisms established by development finance institutions and philanthropic actors. 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.
MSLF2, 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.
Additional foundations, government agencies, bilateral development finance institutions, multilateral funds, and private investors are expected to confirm their commitment to MSLF2 in the first half of 2025. Fundraising for MSLF2 is progressing well towards reaching its target size of EUR 350 million by the end of 2025.
“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.” Anne-Laurence Roucher, Head of Private Equity & Natural Capital, Mirova.
“We are proud to play a part in kick-starting MSLF2 together with institutional investors Abeille Assurances, Allianz France, and BNP Paribas Cardif. By supporting agroforestry, regenerative agriculture, and sustainable forestry in emerging markets, this initiative perfectly aligns with our mission to advance the UN Sustainable Development Goals through innovative financing solutions. We are convinced that the fund and its dedicated team will not only succeed in achieving meaningful positive impact but also continue mobilising private capital at scale, further expanding their reach and fostering resilient ecosystems and empowered local communities.” Guillaume Bonnel, CEO, SDG Impact Finance Initiative.
“At Abeille Assurances we recognize the critical importance of integrating nature and biodiversity into our investment activities. Abeille Assurances is therefore committed to finance projects that directly address the main drivers of biodiversity loss such as change of land use and land degradation. We are also willing to promote collaboration among all parties, public or private, which share the objective of making the economy more sustainable. MSLF2 is an excellent example of such collaboration and Abeille Assurances is therefore very pleased to contribute to financing projects that will counteract biodiversity loss. Thomas Rivron, Chief Investment Officer, Abeille Assurances.
“Collaboration and long-term partnerships—across industries, the private and public sectors, and borders—are essential to advancing sustainable finance and creating a tangible impact. At Allianz France, we are proud to be part of MSLF2, contributing to the agroecological transition through innovative approaches. This is an area we will continue to invest in moving forward.” Nicolas Boulet, Member of the Executive Committee in charge of Investments, Allianz France.
“As a responsible investor, we manage our policyholders’ savings in order to combine financial performance with a positive impact on society. We are delighted to contribute to the projects financed by MSLF2 to protect and preserve biodiversity, which are fully in line with our overall approach to socially responsible investment. BNP Paribas Cardif is indeed engaged to allocate at least 800 million euros per year by 2025 to investments that contribute to the energy transition and initiatives with an environmental theme, including protection of biodiversity.” Eric Béquet, Chief Investment Officer, BNP Paribas Cardif.
“FMO is proud to collaborate with our esteemed partners in MSLF2. This initiative invests in agroforestry, regenerative agriculture, and sustainable forestry aligning with our mission to support sustainable private sector growth. By integrating nature and biodiversity into its investments, the fund aims to restore degraded ecosystems, enables conservation and ensures that areas under agriculture and forestry are managed sustainably. We are grateful for the trust and collaboration of our partners and look forward to a sustainable and inclusive future.” Maurik Jehee, Principal Investment Officer, FMO.
“Proparco is delighted to support MSLF2 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.” Françoise Lombard, CEO, Proparco.