Agricoltura
Abler Nordic, Livelihoods Funds, Musim Mas, and Temasek Foundation Launch Blended Finance Initiative on Sustainable Oil Palm to Combat Deforestation and Aim to Support at least 400 Smallholders
The SOPRI project is a key component of Abler Nordic's broader Climate Smart Fund—launched in the pilot phase with funding from the Norwegian Ministry of Climate and Environment—combining public, philanthropic, and private capital to create deforestation-free value chains and support smallholder resilience projects. Temasek Foundation strengthens this blended finance model by setting aside catalytic capital to guarantee and derisk loans to smallholders for the SOPRI project, thereby reducing financing costs for smallholders and de-risking private investment.
In its first phase, the SOPRI project will support 400 smallholders across 400 hectares in Sumatra , offering long-term replanting loans, financial literacy training, sustainability certification, land title support, and participatory village planning to promote responsible land use. In return, smallholders commit to avoiding forest encroachment, monitored through satellite and on-the-ground checks.
The project is designed to demonstrate that sustainable replanting is both financially viable and scalable, with future phases aiming to reach over 20,000 smallholders.
The Climate Smart Fund will act as the lead organisation, managing financial operations and coordinating implementation with local partners such as Koltiva and Bank Amar. Musim Mas is providing technical support to help smallholders achieve sustainable palm oil certification and access markets, while Livelihoods Funds brings expertise in training and certification to help farmers transition to sustainable practices.
Beyond replanting, the project is also exploring climate-resilient agroforestry models, integrating oil palms with shade trees and cash crops to improve soil health, regulate microclimates, and support smallholders in adapting to climate change.
Abler Nordic now aims to expand the broader Climate Smart Fund from the initial USD 10 million fund to 40 million USD in its first close, using a mix of investor capital, guarantees, and grants to scale concrete and sustainable climate action.
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Devane Sharma ,
Corporate Communications Department
Email: media@musimmas.com
Phone: (65) 6576 6500
Media Enquiries: (65) 9012 1582 (WhatsApp Calls only)
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