Proparco Backs Mirova’s New Fund to Drive Sustainable Land Use in Emerging Markets

Proparco is reinforcing its commitment to sustainable land use by supporting Mirova, a private asset management company that focuses on sustainable and responsible investing and is part of Natixis Investment Managers, in launching the Mirova Sustainable Land Fund 2 (MSLF2).

This new fund, which is on track to reach its target size of EUR 350 M by the end of 2025, is designed to boost sustainable land use scaling up regenerative agriculture, agroforestry, and sustainable forestry in emerging markets. By bringing together a coalition of investors, MSLF2 aims to accelerate projects that restore degraded landscapes, reduce carbon emissions, enhance biodiversity, and strengthen local communities in emerging markets.

Mirova is no stranger to impact-driven investing in natural capital. The new fund builds on the success of the Land Degradation Neutrality (LDN) Fund, which Mirova launched in partnership with the United Nations Convention to Combat Desertification (UNCCD) and with initial backing from Proparco’s parent company, AFD. Throughout its lifetime, the LDN Fund raised USD 208 M and invested in 13 sustainable land management projects across Latin America, Africa, and Asia, supporting businesses in coffee, cocoa, timber, nuts, fresh fruit, pharmaceutical ingredients, and ecosystem services.

Building on the proven model of the LDN, MSLF2 will follow a blended finance approach, combining public and private capital to de-risk investments and attract larger-scale funding. The fund reached its first closing and began operations in 2024, with the backing of a diverse coalition of investors.

Proparco and FMO, the Dutch development finance institution, are among the lead supporters, alongside the SDG Impact Finance Initiative (SIFI), which plays a catalytic role as the first junior investor. Institutional investors such as Abeille Assurances, Allianz France, and BNP Paribas Cardif have also joined, bringing additional financial muscle to the initiative.

Additionally, the Rainforest Alliance will contribute its expertise by developing a pipeline of high-quality projects and supporting their implementation on the ground as part of its strategic partnership established with Mirova earlier this year.

By financing initiatives that decarbonize agricultural and forestry value chains, restore ecosystems, and enhance biodiversity, the fund is tackling major global challenges, from climate change and food security to water scarcity and social inclusion. A particular focus will be placed on empowering women in emerging economies, ensuring that investment flows benefit local communities.

This MSLF2 fund is the first investment to fall within the scope of Proparco’s Natural Capital strategy, which prioritizes financing projects that provide both climate and biodiversity benefits. Proparco’s strategy focuses on three key areas: the conservation, restoration and sustainable timber production of forests and mangroves; the sustainable use of land in agriculture and wetlands (through regenerative agriculture and agroforestry); as well as sustainable and regenerative practices for the Oceans.

Through its support of MSLF2, Proparco is aiming to catalyze further investors in order to support Mirova’s fundraising efforts. Additional foundations, government agencies, bilateral development finance institutions, multilateral funds, and private investors are expected to join the investor pool by the end of 2025.

Anne-Laurence Roucher, Head of Private Equity & Natural Capital at Mirova, emphasized the importance of collaboration in achieving impact: “Fostering cooperation among all stakeholders is key to transitioning nature-dependent industries to more sustainable models that support local communities. We are grateful to our partners for their trust in Mirova’s expertise in natural capital.”

Proparco CEO Françoise Lombard reinforced this message: “We are proud to support MSLF2, which aligns with our commitment to biodiversity conservation, climate resilience, and social inclusion. This fund represents a crucial step toward scaling nature-based solutions that deliver long-term benefits for both people and the planet.”