Business models for sustainable investments in the context of tropical forest restoration

Abstract: The Tropics continue to provide the most biologically diverse and carbon rich forest in the world, but they are being lost at alarming rates. To meet the global climate change targets and the UN sustainable development goals, financing is urgently needed to speed up and increase tropical forest restoration. The aim of this thesis is to show that sustainable timber and non-timber forest products offer are a viable vehicle for investment in tropical forest restoration and to identify the needed incentives and tools to enable sustainable investment.   There is a lack of research on the integration between business model design and sustainability generally and an absence of business models for tropical forest restoration. Very little research if any, has been undertaken to link the two and evaluate the feasibility of applying business models on tropical forest restoration, especially with regard to its potential as an interesting investment option. This thesis gives a background about tropical forest restorations, sustainable investment, presents three tropical reforestation projects and a conceptual framework. The conceptual framework will be used to evaluate the potential for business model application to finance restoration and enable sustainable investments.   Using a business model for tropical forest restoration projects, which in most cases are not defined as businesses, is an innovative approach and an agent of needed radical change. A business model is a crucial strategic management tool to enable success of tropical forest restorations. The core logic of the business model can offer equitable customer value and the fulfillment of new types of needs. Merging economic development and forest restoration is a powerful tool for innovation. The critical variables for financing are management, monitoring, operational efficiency, political incentives and regulations, stakeholder involvement, community benefits, transparency and information communication technology.