About the fund
Livelihoods Carbon Fund #2 was created in 2017 by Crédit Agricole, Danone, Firmenich, Hermès, Michelin, SAP, Schneider Electric, and Voyageurs du Monde to enable them to accelerate their climate and community impact relative to LCF1. Eurofins joined the fund in 2019 as the ninth corporate investor, bringing total committed capital to €65M. LCF2 was designed as a direct continuation and scale-up of LCF1's model, with a larger fund size and expanded ambition: LCF2 plans to invest €100M in carbon sequestration projects, achieving 12 million tons of CO2 over 20 years — though public sources consistently confirm the fund's final closed size at €65M, suggesting a partial deployment against the original €100M ambition. As with LCF1, the fund's mechanism is results-based: project developers (NGOs, social enterprises, and cooperatives) receive upfront financing for 10–20 year project cycles, and the fund receives internationally certified carbon credits in proportion to verified GHG sequestration or avoidance. Investors use these credits to offset their own unavoidable residual emissions. LCF2 also extended and scaled up several LCF1 projects in addition to financing new ones. One flagship LCF2 project is Yagasu (Indonesia): a 20-year mangrove restoration project approved in 2018 covering 5,109 hectares of degraded mangrove ecosystems on the east coast of Aceh and North Sumatra, implementing a silvo-fishery model allowing sustainable aquaculture alongside ecosystem restoration.
