PROGREEN’s expansion reaffirms international efforts in forest governance and sustainable landscape management. ESG BROADCAST shares key takeaways.
Regulatory Extract:
The World Bank, together with development partners Germany, Sweden, and the United Kingdom, officially extended the PROGREEN multi-donor trust fund to 2031. Originally launched in 2021, PROGREEN supports sustainable and resilient landscape management across 76 countries with a focus on forest economies, biodiversity, and nature-based development.
The trust fund’s extension signals a renewed international commitment to forest preservation, ecosystem restoration, and nature-based climate solutions. The expanded timeline will allow PROGREEN to deepen its work in fragile ecosystems, strengthen policy support for governments, and scale up successful forest landscape interventions. The fund plays a critical role in global climate strategies, given that forest-based sectors employ roughly 1% of the world’s working population and offer key environmental services like carbon sequestration, water security, and erosion control.
“With the extension of PROGREEN, we’re saying loud and clear: investments in forests, landscapes, and nature deliver pathways out of poverty for the most vulnerable communities in the world,” said Genevieve Connors, Acting Global Director for Environment at the World Bank.
Since its inception, PROGREEN has supported sustainable forest management across nearly 4 million hectares while improving livelihoods for 4 million people. The fund’s technical and financial support has been critical in strengthening landscape governance, promoting biodiversity conservation, and encouraging sustainable land use practices in tropical and climate-sensitive regions.
As of mid-2025, PROGREEN manages a portfolio of $209 million, distributed across 14 investment programs and 96 knowledge programs. Its projects are integrated into the World Bank Group’s overall lending and planning systems, significantly multiplying impact. For every US$1 invested by PROGREEN, an average of US$63 in additional World Bank Group financing is mobilized—showcasing a high-leverage model for green finance deployment.
“Forests are essential for job creation and economic development globally,” Connors added, underscoring the fund’s dual role in driving economic inclusion and environmental governance.
Importantly, PROGREEN’s extended mandate aligns with the World Bank’s broader agenda of supporting climate-resilient development pathways. This includes support for policy reforms, institutional strengthening, and capacity-building efforts that help governments sustainably manage forests while addressing local community needs.
Strategic significance lies in PROGREEN’s ability to act as a catalytic vehicle for green finance and integrated landscape management. Its extension not only reaffirms donor confidence but also enhances the fund’s role in achieving global climate goals and inclusive rural development.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
