This report explores the use of innovative financial mechanisms to finance forestry projects and their associated benefits. It summarises existing and traditional forms of finance for forestry, considers lessons from the development of the social finance sector in recent years, and examines the potential for the use of community funded schemes, environmental impact bonds and collaborative and partnership investment models.

The relevance, adaptability and practicality of commonly used investment structures within mainstream finance, within the social investment market and within the nascent natural capital investment sector are reviewed.