Report: Priority Actions for Deforestation- and Conversion-Free Finance

Despite world leaders pledging to end deforestation by 2030, forest loss hasn’t slowed. One critical barrier: financial systems that continue to fund the destruction of forests and other ecosystems.

The report asks: How can the financial system become an engine for forest and ecosystem protection?

The Priority Actions for Deforestation and Conversion-Free Finance – part of the 2030 Global Forest Vision – outlines how policymakers, regulators, and financial institutions can align private financial flows with global commitments to halt and reverse deforestation and conversion. Our contribution to the report builds on years of work in Forests & Finance, and the message is clear: financial systems must stop fueling deforestation and start financing solutions.

Our contribution to this report builds on our work in mobilising innovative finance for deforestation-free supply chains through our project Solutions for Mobilising Financial Sources, where we explore how to unlock private and public capital for sustainable agriculture and land use, contribute to the development of actionable financial solutions for smallholders, and advise key stakeholders on creating the enabling conditions for forest-positive investment.

The report makes clear recommendations for…:

…Governments:

• Align fiscal policy and economic planning with forest goals
• Enable financial system transition
• Deploy catalytic public finance for forests
• Break the debt–deforestation cycle

…Central banks & supervisors:

• Issue supervisory expectations and risk management guidance
• Strengthen disclosure and transparency requirements
• Assess and adapt to systemic risks
• Lead by example in reserve and monetary policy

…Financial institutions:

• Strengthen portfolio resilience and support corporate transition
• Advocate for enabling policy frameworks
• Allocate capital to sustainable agriculture and land use

A coordinated approach – where governments create enabling policy, central banks set clear supervisory expectations, and financial institutions align portfolios with forest goals – can create a powerful feedback loop to drive system-wide transformation at scale.

Read the full Priority Actions: