Take a look at our glossary, where we explain relevant terms relating to investments in forests and agriculture.
No, this is not a “new” rainforest. Once primary forests and rainforests have been clear-cut they are irrecoverably lost. What does, however, come into existence through ForestFinance and your investment is a new secondary forest suited to the location. Fallow land is turned into a forest ecosystem, providing new habitats for the local flora and fauna (“plenter forest”).
The certified, ecologically-sustainable forestry management ensures that the forest becomes an attractive living-space for animals and serves as a stepping stone between primary forest remnants. As a rule, the ecosystem of a newly planted forest is less complex than that of a primary forest. Achieving the same complex condition as its predecessor usually requires hundreds of years of regeneration and a strict ecological orientation of the forest management.
Learn more about our forests and our certified sustainable forest management system here. Our tree encyclopaedia provides information about certain tree and plant species.
We believe it does! The planting of mixed forests, as it is done by the ForestFinance Group, creates jobs for the local population in and through the forest. As a result, people are no longer forced to cut and destroy primary forests elsewhere in order to cover their need for timber und to make a living.
At the same time the trade pressure on timber from rainforests is eased by the production of certified, ecologically sustainably produced timber. The availability of sustainable timber in world trade means that one does not have to fall back on supplies from the (illegal) exploitation of primary forests – which must, of course, be completely banned.
Thirdly, reforestation projects contribute to the reconversion of fallow land into a forest ecosystem. They provide food and habitats for numerous endangered animals, protect the soil from erosion and dehydration and are important carbon sinks.
ForestFinance forests are in general completely different from monocultures. The ecologically managed forests mainly consist of native tree species that are suited to the location. We are building forests or, more specifically, the tropical version of a plenter forest. All of the ForestFinance products aim at creating a socially and ecologically sustainable forest suited to the location. However, there are some differences between the individual products:
1. Mixed forests in Panama
In Panama, a mixed forest with predominantly native tree species is being reforested, which also includes a section of pure conservation area. This project is focussed on timber volume and revenue yield, which is why species such as teak, mahogany, amarillo, zedro espino, zapatero and a cocobolo are used. The use of chemical fertilisers and pesticides is largely avoided. The new afforestations are mostly abandoned pasture land.
This means we are not yet in the final stage of the forestry management but at its beginning which resembles, during the first years in particular, a tree nursery that rapidly develops into a tropical mixed forest. However, this new forest is a secondary forest, not an old-growth rainforest.
2. Cocoa farming
For our cocoa products, we use an agroforestry system to plant fine cocoa and shade-giving trees or banana bushes, under whose protection the cocoa trees can grow healthily and naturally. Through our sustainable management of agroforests, they provide valuable stepping stone biotopes. We do not use agrochemicals or genetic engineering. In addition, valuable primary forests in Bocas del Toro, Panama, are protected. Endangered animal and plant species such as the Panama jaguar, the squirrel monkey and the palm fern species Zamia skinneri are found here.
3. Acacia forests
Our acacia forests, on the other hand, are actually existing plantations that ForestFinance takes over in order to gradually convert them into forest. The acacia, for example, as a preliminary stage for a native mixed forest, loosens the soil and enriches it with nutrients that other trees need in order to grow well there. This way, acacia trees can transform the area into a mixed forest and enrich it with other native tree species.
The secondary forest remains as forest in all projects even after and during utilisation (harvesting), thus serving as a gene pool, creating new habitats for numerous animals and plants and fulfilling its function for water and climate protection – in the long term!
4. Organic farming im Morocco
Our organic farming projects in Morocco include organic farming with olive trees, date palms and almond trees. ForestFinance has decided to produce both dates and olives as organic food in order to protect the environment and achieve more stable and higher prices. In the long term, the project plan foresees the planting of so-called underplanting on the date areas. In addition to dates and olives, we have decided to produce the superfood almonds as organic food in order to protect the environment and achieve more stable and higher prices.
A fair balance of interests without evictions or taking advantage of the economic hardship of the sellers has been part of our philosophy since the company was founded. This also means that ForestFinance contributes to improving the working and living conditions of the local population, including the land sellers through the creation of long-term and socially secure jobs, but also through accompanying social programmes and close involvement of the local population. After all, new forests can only be created sustainably and in the long term if the local population also benefits from them.
Teamwork is at least as important in the forest as it is in the office: those who are involved in it are committed to preserving and expanding it. As with the production of organic food, reforestation only adds value if everyone involved benefits from it. ForestFinance therefore refuses to generate profits for its existing customers by exploiting suppliers, employees or nature.
These are the acronyms used for the most commonly known standards that are applied to certify the social and ecological sustainability of climate protection or forest projects. ForestFinance forests are certified according to these standards by independent third parties.
1. FSC®
The Forest Stewardship Council® (FSC® for short) is an international NGO aiming at the conservation of forests by means of an environmentally appropriate and socially beneficial forest management. To this end, the FSC® developed a label for timber that is acknowledged worldwide. The forest management assessment leading to the FSC® certification is carried out by independent certification bodies such as the Rainforest Alliance. Numerous environmental organisations and unions support the FSC®. Our forests in Panama are ecologically-sustainably certified.
2. UTZ
UTZ Certified is an independent certification programme based in Amsterdam which was launched in 2002 and which is now the largest certification programme for cocoa and coffee with further certification schemes for tea and hazelnuts. The UTZ label is only featured on goods that are produced and marketed sustainably, i.e. in adherence with strict economic, social and ecological standards. The programme allows producers to prove their credibility and guarantees sustainable and responsible farming towards consumers.
The cocoa project in Panama was UTZ certified between 2014 and 2022. The cocoa project in Peru from 2018 to 2022. At both locations, organic certification is now valid.
3. Gold Standard
In 2012, the Gold Standard Foundation acquired the CarbonFix Standard, extending its original project scope into land use and forests. This extended Gold Standard 3.0 recognises performances in the fields of sustainable resource extraction in agricultural and forestry sectors, protection of biodiversity as well as water protection and social fairness. The Gold Standard is acknowledged worldwide for its strict criteria guaranteeing the credibility and integrity of compensation projects. Three of our projects have been awarded a Gold Standard certification.
4. CCBA
The CCBA (Climate, Community & Biodiversity Alliance) standards certify project benefits for the climate, regional development and biodiversity. Our reforestation project in Panama was awarded the “gold” certification (2010–2015). The project assessment leading to the CCBA certification is carried out by the Rainforest Alliance.
Of course you can! Just give us a short notice if you are planning to go to Panama. Our colleagues will be happy to organise a visit of the areas accompanied by one of our forest engineers (“investor trip”) for you. Unfortunately, the locations of the areas in Colombia, Morocco, Vietnam and Peru are rather remote and therefore not well-suited for visitors. Please contact us!
Each year, we alternately publish a general activity report and a forestry report or project reports from our locations respectively. Customers are also informed by newsletter when new reports are online. All reports are available in your online customer account, which you will find at www.forestfinance.com under “My account”. Based on the information where your forest area is located, you are then able to learn from the reports how your trees have developed and which activities took place on the project area in the preceding year.
Furthermore, we strive to keep the picture galleries for each finca (which you will find in your customer account and under pictures) up to date to allow you to see new pictures of your trees on a regular basis. Please do not hesitate to contact us via e-mail at info@forestfinance.com or phone +49 228 943 778 27 (Monday-Thursday 10am - 3pm) should you have any further questions.
Even a non-cultivated forest such as our ProtectionForest (WaldSchützer) in Las Lajas entails certain efforts and running costs. Our main objectives include preventing fires by installing fire breaks, which must be kept clear at all times, separating protected zones from pasture land to prevent browsing damages by cattle, as well as maintenance work.
“Administrative processes” such as biodiversity monitorings cause additional costs. Also, the protected areas were acquired together with farming areas by ForestFinance. Therefore, the acquisition costs for the ProtectionForest also need to be refinanced. With the ProtectionForest, the "non-use" of forest land and the associated costs are invoiced.
The period of 50 years is due to legal restrictions and depends on the maximum contract term. ForestFinance has absolutely no intention of implementing a change of use after 50 years. However, as long as there is no legally defined conservation area officially fostered by the government, any further reaching commitment would be of mere “psychological” nature. A fixed 50 year period is quite common in the field of carbon sequestration, which is why we have chosen to remain within the same time frame.
With our Oasis-project a biologically managed agroforestry system with olive trees and date palms is being developed in an arid region in Morocco. ForestFinance has decided to produce both dates and olives as organic food in order to protect the environment and to achieve more stable and higher prices. With our second Oasis-project we plant almond trees in the direct neighbourhood of the first Oasis-project area to produce high-quality organic almonds. Both projects have already been awarded the EU organic label. They are listed under the certification number MA-BIO-151.
Agroforestry means that trees and field crops are cultivated, animals are kept or beekeeping is carried out simultaneously or consecutively on the same area. If properly implemented, agroforestry is a sustainable form of landuse where crops can be used as soil improvers or trees can enrich agricultural systems with their positive ecological properties. At the same time, production is diversified and the risk of failure of one of the components is buffered. Oasis management in desert regions has been an important part of the ecosystem for centuries. We also expect positive effects at our site, as other plant species can and should settle on the irrigated land and in the immediate neighbourhood. In the long term, the project plan involves planting so-called subplants on the date areas. Possible are, for example, pomegranates and various types of vegetables.
A sustainable irrigation strategy has always been a prerequisite for the Oasis-projects in Morocco. We work closely with the local authorities to ensure that our sources are renewable and that our irrigation systems meet the highest environmental and social standards.
The project area is located in the Atlas Mountains of Morocco. The main water intake areas here are the Drâa River in the west and the Ziz River, which irrigates the oases of Tafilalet, in the east. The water used therefore comes from different sources. The water management in Morocco is carried out by the government and our project has been checked in advance by the local authorities. Projects are only given the green light by the authorities if they do not endanger the groundwater level for the next 30 years. A hydrological environmental impact assessment is carried out. In addition, our project has the opportunity to use the irrigation water from the Al-Hassan Addakhil dam (approximately ten kilometres from Errachidia). To reduce future burdens on the oasis ecosystem, the Moroccan Ministry of Water and Energy has decided to build an additional multi-purpose dam in the region that will produce 30 million cubic metres of water per year.
ForestFinance projects are currently located in Germany, Colombia, Panama, Peru and Morocco. Learn more about our project locations here.
We foster nature conservation and climate protection: through the reforestation of fallow land in Panama and Peru and the sustainable conversion of monocultures in Vietnam and Colombia or organic farming in Morocco. The trees that we plant together help to improve soil quality. They are natural water reservoirs and home to rare and endangered plant and animal species.
In addition to species protection, our forests are also an important component in protecting the global climate; trees absorb CO2 from the atmosphere and can therefore help to slow down the global rise in CO2 concentrations. Also, nature needs time to recover. Together we protect the forest in the long term. The CO2 sequestration on the ForestFinance areas is also guaranteed by international standards such as the Gold Standard.
Sustainable reforestation also offers the people in Panama, Colombia, Morocco and Peru who live and work in and around our projects a wide range of opportunities: around 200 people are employed by us in the project countries at peak times – they earn above the national minimum wage.
In previous projects in Vietnam, for example, the Sequa project was implemented together with the Gesellschaft für Internationale Zusammenarbeit (GIZ). Environmental education plays a central role as well: your contribution supports a nature trail in Panama, for example, which is actively used by local schools to increase awareness of nature among children and young adults.
The ForestFinance Group is an important contact for economic, forest scientific and development organisations. In particular our good networks in the project countries and our commitment to sustainable development are reasons why our partners trust us.
ForestFinance is a founding member of both the Business and Biodiversity Initiative ‘Biodiversity in Good Company’ in Germany and the Biodiversity Partnership Mesoamerica, together with the environmental institute CATIE.
Yes, of course they can. One of the best ways for companies to do so is the ProtectionForest: a lively and species-rich rainforest in the Chiriquí province in Panama, which allows you to protect forest for at least 50 years. Apart from this project, there are various other ways for companies to sustainably invest in forest, such as a pension scheme for employees. Please feel free to contact us for more information.
The ForestFinance Group, headquartered in Bonn, has been successfully developing ecological forest investments for three decades. The group of companies has reforested more than 7,200 hectares in South and Central America, North Africa and Asia for over 27,000 customers. Around 15 employees in Germany are primarily responsible for communication and marketing, customer service and contract management. In Panama and Peru, ForestFinance forestry experts monitor compliance with the high quality standards and the ecological and social principles of the ForestFinance Group. In Colombia, the customer forest areas are managed by our forestry service provider. We have been working closely together for many years.
More than 50 employees are permanently employed in Panama (with social insurance, of course). In addition, jobs are created for around 20 seasonal workers during the harvest, planting and thinning seasons.
The founder of Forest Finance Service GmbH is Harry Assenmacher, who has been actively involved in the ecological sector since the early 1980s. Christiane Pindur (with the company since 2009) is the Managing Director of Forest Finance Service GmbH.
What originally began in Germany in 1997 as a partner office of a Panamanian forestry company has been an independent German GmbH (Forest Finance Service GmbH based in Bonn) since summer 2005. The ForestFinance Group plants trees with subsidiaries in Panama and Peru as well as partner companies in Colombia, which act as land ownership companies and regional service companies.
The basic idea behind all ForestFinance Group projects is the ideal symbiosis of profitable investments and ecologically sound activities. The ForestFinance Group has succeeded in offering investors with a small budget a sustainable investment with a profitable return in an ecologically renewable raw material.