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Growing Forests, Growing Economies : Scaling Private Investment in Latin American Reforestation for Jobs, Growth, and Global Public Goods

World Bank

Published

10 Aug 2026

Coverage

LATINAMERICAANDCARIBBEAN

This report examines how Latin America and the Caribbean can scale reforestation by attracting private investment rather than relying solely on public funding. The report highlights that restoring forests can generate rural employment, strengthen livelihoods, enhance biodiversity, improve climate resilience, and contribute to global environmental goals. However, private investment remains constrained by high upfront costs, delayed returns, regulatory uncertainty, and limited access to finance. The study finds that diversified agroforestry systems offer the strongest balance between job creation and environmental benefits, while restoration-focused projects deliver the highest carbon sequestration. It emphasizes that timber, crops, and livestock revenues remain the primary drivers of investment, with carbon and biodiversity credits serving as complementary revenue sources. To unlock large-scale private capital, the report recommends clear policy frameworks, secure land tenure, targeted incentives, blended finance mechanisms, guarantees, aggregation models for smallholders, and stronger market linkages. It concludes that coordinated policies, predictable financing pathways, and private sector participation are essential to achieving sustainable and scalable reforestation across the region.