GISI Consulting Group company Palladium has officially launched the second phase of the UK Government-funded Partnerships for Forests (P4F). The program’s first phase, which Palladium and partner Systemiq implemented from 2017 to 2024, successfully mobilized over £1 billion in private finance to protect and restore tropical forest landscapes, brought 8.6 million hectares of land under sustainable management, and directly benefitted 326,000 people on the ground.
Why Forests Matter
At a time when much of the world is grappling with the urgent need to combat climate change and reverse biodiversity loss, the role of forests in mitigating these twin crises has never been more critical. Nevertheless, many forests are facing threats, from deforestation and illegal logging to unsustainable land-use practices.
The answer? Significant investment and innovation to embed more sustainable practices in supply chains, support forest-friendly businesses, and build more resilient local communities. This is exactly what P4F was designed to do and what it will continue to do for the next five years.
The P4F Approach
“This work, spanning continents from Africa to Southeast Asia to Latin America, reflects Palladium’s commitment to developing market-driven solutions that promote sustainability and support the communities that depend on forests,” says P4F Team Leader Katie McCoy.
Falling under the UK Government’s Investments in Forests and Sustainable Land Use Programme (IFSLU), this new phase will mobilize private investment into inclusive sustainable businesses that protect and restore forests while supporting livelihoods and growth, ensuring value flows back to forest-based communities and smallholder farmers.
In Phase II of P4F, Palladium will provide technical support, grants, and financial tools through locally-led teams to help forest-friendly businesses to scale. The program will also continue creating the right conditions for sustainable businesses to grow by shaping national policies, strengthening local governance and fostering demand for sustainable forest product.
Transforming Industries and Supply Chains
“This is about more than just addressing environmental issues,” McCoy adds. “It’s about transforming entire industries and supply chains by supporting businesses that unlock the economic, environmental and social potential of forest landscapes. We’re focused on creating long-term, systemic change by ensuring that businesses have the necessary resources to thrive in the green economy.”
The second phase of P4F also includes a shift to a new region, the Congo Basin, which spans Cameroon, the Republic of Congo, Gabon, and the Democratic Republic of Congo. Home to some of the world’s most critical forest ecosystems, this region plays a crucial role in global climate stability.
Overcoming Barriers to Private Sector Engagement
“Our experience with P4F has shown we need to address the barriers that can unlock private sector engagement.” says Andrew Sutherland, Palladium Head of Environment. “This is particularly true in the Congo Basin, where the market is early-stage and there are limited livelihood opportunities. To address this, we’re helping to lay the foundations for sustainable private-sector-led growth by working with cooperatives and pioneering companies, providing incubation support and helping them to grow their businesses and attract investment. We are also empowering forest-dependent communities to lead and benefit from sustainable forest economies.”
Ultimately, the success of P4F’s initiatives will have ripple effects across local economies, helping to create sustainable jobs, protect critical habitats, and mitigate the impacts of climate change.
Palladium works with governments, businesses, investors, and communities to solve the world’s most pressing challenges. Founded in 1965 and operating in 100 countries, clients trust Palladium to design and implement complex, large-scale programs in any environment, creating lasting impact where it’s needed most.