Africa promotes new forest financing models despite $66.8 billion gap

African countries are adopting new financing models to protect and restore forests, but funding remains far below what is needed to stop deforestation by 2030.

This is contained in the first progress report on the Forest Finance Roadmap launched at the Forest & Climate Leaders’ Partnership (FCLP), during Climate Week NYC.

The Roadmap aims to close a $66.8 billion annual funding gap for forests. Forests represent around 20% of cost-effective climate mitigation potential, but receive less than 1% of global climate finance.

FCLP Secretariat Director Emelyne Cheney said the report clarifies where forest funding is flowing, warning that forests must remain at the center of the climate agenda.

The report highlights African models that combine national budgets, international finance and private investment. Africa has 663 million hectares of forests, approximately 16% of the global forest area.

Kenya has secured $229 million in new external financing, including a $200 million World Bank operation and a $29.2 million Green Climate Fund grant. Kenya also increased its forestry budget by $38.7 million in 2025/26.

Ethiopia is spending $40 to $80 million a year of its budget on the Green Legacy Fund to address land degradation that costs $4.3 billion a year.

Nigeria has announced the “Securing Nigeria’s Forest Future Country” package to be launched at COP31 in Türkiye to coordinate investments in forests and biodiversity.

Environment Minister, Balarabe Abbas Lawal, said Nigeria must strengthen the enabling environment for private and blended finance to secure livelihoods for communities.

In the Congo Basin, the Central African Forest Initiative is developing a $290 million payment plan for ecosystem services, with a goal of $2 billion by 2035.

The report finds that while African models show progress, investments remain insufficient to meet the 2030 forestry target.