The Livelihoods Funds are investment vehicles tackling environmental degradation while addressing rural poverty. The funds rely on the support of private companies committed to promoting sustainable development while reducing their carbon footprints or transforming their supply chains, as well as engagement with public organisations, NGOs and civil society to ensure maximum impact. The funds are advised by Livelihoods Ventures. Livelihoods currently operates two investment funds:
1. The Livelihoods Fund for Family Farming (L3F) finances large-scale sustainable agriculture projects that deliver positive environmental impacts across landscapes and improve livelihoods for local rural communities. The financial return for the fund is provided by results-based payments from private and public off-takers that commit to paying for the raw materials, public goods and environmental services generated. Launched in 2015, the fund is committed to investing €120 million over 10 years.
2. The Livelihoods Carbon Funds (LCF) finance carbon sequestration projects such as agroforestry, ecosystem restoration and rural energy projects with high social impact, including improved market resilience, higher incomes and better health for vulnerable rural communities. Fund investors receive carbon credits in exchange for their contribution, which they can also use to offset their unavoidable emissions.167,168 The Livelihoods Carbon Fund #1 has invested €40 million in 9 projects across Africa, Asia and Latin America, planted 130 million trees – benefiting 1 million people – provided 120,000 households with efficient cookstoves and sequestered 10 million tons of CO2 over 20 years.169 The Livelihoods Carbon Fund #2, launched in 2017, plans to invest €100 million in carbon sequestration projects, achieving 12 million tons of CO2 over 20 years.170
167 Anya Khalamayzer. 2018. ‘This $118 Million Mutual Fund Pays Companies in Carbon Credits’. Greenbiz. 3 January 2018. https://www.greenbiz.com/article/118-million-mutual-fund-pays-companies-carbon-credits.
168 ‘The Livelihoods Funds Strengthen Their Investments in Africa to Support Companies in Their Sustainability Journey and Responsible Sourcing Commitments’. 2019. 14 March 2019. [https: //ww w.danone.com/content/dam/danone-corp/medias/media-othernews- en/2018/corporatepressreleases/Thepercent20Livelihoodspercent20Fundspercent 20strengthenpercent20theirpercent 20investmentspercent 20inpercent20Africapercent20topercent 20supportpercent20companiespercent20inpercent 20theirpercent20sustainabilitypercent20journeypercent20andpercent20responsiblepercent 20sourcingpercent20commitments.pdf.]
169 ‘LCF- Livelihoods Carbon Funds’. n.d. Livelihoods Funds. https://livelihoods.eu/lcf/.
170 ‘LCF- Livelihoods Carbon Funds’. n.d. Livelihoods Funds. https://livelihoods.eu/lcf/.