Priority Actions for Deforestation- and Conversion-Free Finance

The report 'Priority Actions for Deforestation- and Conversion-Free Finance' provides a strategic framework to align private financial flows with the goal of halting and reversing deforestation and ecosystem conversion by 2030. It outlines specific priority actions for three key groups: policymakers, central banks and financial supervisors, and financial institutions, emphasizing the need for coordinated action to manage nature-related risks and catalyze a transition to nature-positive business models.

• The report identifies a critical need for policymakers to align fiscal policy and economic planning with deforestation- and conversion-free (DCF) goals. This includes reforming subsidies in agriculture, infrastructure, and extractives, embedding DCF targets into public spending and taxation, and excluding deforestation-driving activities from sovereign loans or bonds.
• Central banks and financial supervisors are urged to integrate deforestation and conversion risks into financial oversight to maintain systemic stability. Recommended actions include mandating portfolio risk management, issuing supervisory expectations for nature-related risks in transition plans, and aligning reserve asset portfolios by tilting them toward issuers with strong forest governance.
• Financial institutions are encouraged to strengthen portfolio resilience by assessing forest-risk exposure and setting time-bound DCF targets. The report suggests engaging with companies through DCF clauses in agreements and allocating capital to sustainable agriculture using blended finance and concessional capital to de-risk investments in high-risk regions.
• The report emphasizes the necessity of mandatory, harmonized nature-related disclosures to reduce investor uncertainty. It advocates for the adoption of frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the International Sustainability Standards Board (ISSB), ensuring that reporting covers both financial and impact materiality.
• Addressing the 'debt–deforestation cycle' is highlighted as a priority, where high debt burdens in forest-rich countries lead to resource exploitation. The report suggests restructuring or cancelling unsustainable debt through multilateral development banks (MDBs) and integrating the multidimensional value of forests into debt sustainability frameworks.

APA

Forest Declaration Assessment (2025). Priority Actions for Deforestation- and Conversion-Free Finance. https://forestdeclaration.org/wp-content/uploads/2025/09/2030Vision-DCFFinance.pdf

Chicago

Forest Declaration Assessment. Priority Actions for Deforestation- and Conversion-Free Finance. 2025. https://forestdeclaration.org/wp-content/uploads/2025/09/2030Vision-DCFFinance.pdf.

Wikipedia

{{cite report |author=Forest Declaration Assessment |title=Priority Actions for Deforestation- and Conversion-Free Finance |date=September 2025 |url=https://forestdeclaration.org/wp-content/uploads/2025/09/2030Vision-DCFFinance.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forestdeclarationassessment2025priority, author = {{Forest Declaration Assessment}}, title = {{Priority Actions for Deforestation- and Conversion-Free Finance}}, institution = {Forest Declaration Assessment}, year = {2025}, month = sep, url = {https://forestdeclaration.org/wp-content/uploads/2025/09/2030Vision-DCFFinance.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }