Bhutan’s Mountain Hazelnuts (MH), a sustainable agroforestry enterprise, has secured a $7.9 million (€7.3 million) equity investment led by Mirova and Finnfund. The fresh funding will support climate-resilient farming initiatives while creating new income-generating opportunities for smallholder farmers and combating land degradation.
With the support of this new investment, Mountain Hazelnuts (MH) has secured full operational funding for the next five years. This financial stability will enable the company to advance and complete several key initiatives, including the rollout of its climate adaptation grafting programs, which are essential for building resilience against changing weather patterns and enhancing crop productivity.
The funding will also support the expansion of MH’s processing facilities to accommodate increased production volumes, ensuring efficiency and quality as the company scales. Additionally, MH will pursue internationally recognized certifications for its premium hazelnut products, positioning the company to access high-value export markets and strengthen Bhutan’s reputation for sustainable, high-quality agricultural exports.
Strengthening Bhutan’s Rural Economy
Founded in 2009 by Teresa Law and Daniel Spitzer, MH operates as a public-private-community partnership with the Bhutanese government. The enterprise aims to plant 10 million hazelnut trees, restoring degraded mountain slopes and providing smallholder families with hazelnut trees, agricultural inputs, and technical support. The initiative has played a vital role in boosting Bhutan’s rural economy.
Mirova, a subsidiary of the Natixis group, has invested $3.9 million in MH’s Singapore-registered holding company, while Finnfund has contributed $3 million. The remaining investment comes from MH’s management and founders, alongside an unnamed private investor. Mirova is now the largest shareholder in MH, followed by management and founders, Finnfund, family office Ceniarth, and the private investor.
Backing from the European Union
The investments by Mirova and Finnfund are supported through the European Fund for Sustainable Development Plus (EFSD+) under its Carbon Sinks program—an initiative designed to promote investments in forestry, agroforestry, carbon sequestration ecosystems, and the blue economy. The program reflects the European Union’s broader commitment to climate action, biodiversity preservation, and sustainable land-use practices in developing countries.
While Mirova has been a committed investor in Mountain Hazelnuts (MH) since 2020, Finnfund’s participation marks a significant new milestone, representing its first investment in the company. This strategic partnership reinforces international confidence in MH’s model of inclusive, regenerative agriculture in Bhutan.
Ilkka Norjamäki, Associate Director and Head of Agribusiness and Forestry at Finnfund, expressed optimism that this investment would serve as a catalyst for attracting additional climate-aligned capital to Bhutan’s agricultural sector. “We believe this investment has the potential to unlock further financing for sustainable and regenerative agriculture in Bhutan,” he stated.
He also commended Mountain Hazelnuts for its ongoing efforts to promote gender equity across its operations. “We particularly value the company’s strong commitment to increasing the participation of women—as farmers, lead community growers, employees, and managers. We look forward to supporting MH in achieving these important social impact goals,” Norjamäki added.
Securing Market Position and Future Growth
With the newly secured funding, Mountain Hazelnuts (MH) will be well-positioned to strengthen its foothold in international markets by investing in strategic marketing and branding initiatives. These efforts aim to elevate the visibility and reputation of Bhutanese-grown hazelnuts as a premium, sustainably produced product, ultimately enabling the company to command higher prices in competitive global markets.
In parallel, MH is actively pursuing internationally recognized certifications such as Rainforest Alliance and Organic, which will further validate the company’s commitment to environmental sustainability, ethical sourcing, and product quality. These certifications are expected to significantly enhance the brand’s credibility and appeal among environmentally conscious consumers and buyers.
Sean Watson, CEO of Mountain Hazelnuts, described the investment as a powerful endorsement of Bhutan’s growing reputation in the field of sustainable agriculture. “This support reflects the confidence our international partners have in Bhutan’s potential to become a leader in climate-smart farming. It enables us not only to scale our impact but also to empower rural communities, strengthen climate resilience, and share the exceptional quality of Bhutanese hazelnuts with discerning markets around the world,” he said.
Broader Efforts for Sustainable Agriculture
Mountain Hazelnuts (MH) has previously received financial support from a range of prominent international institutions, including the International Finance Corporation (IFC), the Asian Development Bank (ADB), the Global Agriculture and Food Security Program (GAFSP), Ceniarth, and the Land Degradation Neutrality Fund—an initiative supported by the United Nations and managed by Mirova. This diverse backing reflects the broad confidence in MH’s mission to drive sustainable, inclusive agricultural development in Bhutan.
As one of the world’s most climate-vulnerable countries, Bhutan is actively working with international partners such as the European Union and the United Nations Food and Agriculture Organization (FAO) to enhance rural livelihoods through climate-resilient and environmentally responsible agricultural practices. These collaborations focus on building high-value, export-oriented agricultural value chains, improving coordination among stakeholders, and creating an enabling environment for sustainable agricultural financing.
Both Finnfund and Mirova are key players in the global sustainable finance ecosystem. Finnfund, Finland’s development finance institution, channels investments into projects that promote sustainable economic and social development, particularly in emerging economies. Mirova, a French asset management firm, specializes in impact investing and responsible finance, with a strong emphasis on projects that deliver measurable environmental and social outcomes. Their involvement underscores the growing alignment between Bhutan’s development priorities and global climate-smart investment trends.
Tashi Namgyal from Thimphu
