How might the Natural Resources Conservation Service (NRCS) better leverage private capital to support its mission? Could certain conservation practices generate financial returns and attract investment? In this interview, Ricardo Bayon and Alex Eidson, a partner and an analyst at Encourage Capital, share insight and ideas from their new report, “NRCS and Investment Capital: Investing in America Together.” This is the second article of a two-part series.
How might the Natural Resources Conservation Service (NRCS) better leverage private capital to support its mission? Could certain conservation practices generate financial returns and attract investment? In this interview, Ricardo Bayon and Alex Eidson, a partner and an analyst at Encourage Capital, share insight and ideas from their new report, “NRCS and Investment Capital: Investing in America Together.” This is the first article in a two-part series.
What if the development of these approaches could be responsibly accelerated? What if we could shorten the time it takes for environmental markets and investment vehicles to be defined, piloted, scaled, and matured—without cutting corners? The Conservation Finance Network’s recent report, “Private Capital and Working Lands Conservation: A Market Development Framework,” responds to these questions by translating practitioner insight into a framework and common language in the hope of speeding solutions to market development. The report attempts to describe how stakeholders could better delineate their roles and focus their money and authority. It is meant to help stakeholders set realistic goals, expectations, and timeframes to see more capital deployed faster.
Ecotourism is beginning to catch the eye of private investors and other funders who are interested in financing sustainable development, land rehabilitation, wildlife reintroduction, and/or conservation research. Examples from Africa show how ecotourism can synergistically build support for these goals.
Conservation professionals have a challenging path ahead, but resilience finance makes it easier. Out of the carnage that Hurricane Andrew caused in 1992, a market for catastrophe (‘cat’) bonds was born. While ordinary bonds pay buyers interest to cover the risk of default by the issuer, cat bonds compensate buyers with higher interest rates for taking on the risk of extreme events. In the event that disaster hits, investors lose their principal.
Timing can make or break a conservation deal. Land trusts and other conservation groups often work with motivated sellers who must divest property by a certain date or are otherwise eager to close deals quickly. The organizations must either gather the required financing on the sellers’ short timelines or forego the projects. When organizations are short on cash but deem projects too important to ignore, conservation loans can bridge the financing gaps.
There is a high level of uncertainty about federal funding for land conservation over the next four years. The recently passed 2017 budget has kept many conservation-related programs and funds intact, but 2018 may be a different story. The administration’s proposed budget calls for broad cuts to conservation funding, but Congress makes the final decision on appropriations.
Consider this: The $400 billion in private environmental finance needed annually, according to Credit Suisse and McKinsey & Company, is eight times even the more generous current estimates of conservation finance. Practitioners and experts gathered last month at the New York City office of Credit Suisse to explore how to bridge that gap and meet the conservation objectives of the United Nations 2030 Sustainable Development Goals. Conservation Finance Network cohosted the event. Here are some key insights from the conversation.
Investors and bond issuers must improve communication in order to meet each other’s needs as the green-bond market expands rapidly. Green bonds have the potential to enhance transparency, mitigate risk, and stimulate the market toward reaching a low-carbon economy. The green-bond market is estimated to total $150 billion in 2017. This is an 85 percent increase above 2016, according to data from Climate Bonds Initiative.
Dramatic increases in investment in conservation over the last decade are the focus of a new report authored by Forest Trends’ Ecosystem Marketplace, “State of Private Investment in Conservation 2016.” The report sheds light on the many dimensions that drove growth between 2004 and 2015.
We are pleased to announce that the Conservation Finance Network’s 2016 Boot Camp training course is being held in partnership with the Nicholas School of the Environment at Duke University from June 6 to 10.
The White House has issued a directive to point federal agencies toward building ecosystem-services valuation into their plans, investments and regulations. This directive, released on Oct. 7, will help agencies synthesize conservation’s ecosystem benefits with its value to society.
A new forum has emerged for discussing key issues in the rapidly growing and evolving conservation finance field: the Conservation Finance Practitioner Roundtable. The group met for the first time on Jan. 20 at the New York Academy of Sciences in New York City.
While launching our website, we’ve created a video library of playlists you can explore. Visit the videos below - and our new YouTube channel - to learn the nuts and bolts of conservation finance techniques and see how they are applied in the field.
“We don’t have a water crisis, we have a water-management crisis,” said Joe Whitworth, president of The Freshwater Trust, a nonprofit organization based in Portland, Ore., when he spoke at the Social Capital Markets Conference (SOCAP15) in San Francisco on Oct. 8.