Analysis of new innovative Financing Mechanism for the Conservation of Forest and Biodiversity

Study (July 2017), OroVerde and Global Nature Fund

Private capital for nature conservation: Could impact investments be a solution?

Recommendations (July 2017), OroVerde and Global Nature Fund

Recommendations for policy makers to promote Impact Investments in forest and biodiversity conservation

Case Studies (May 2017), OroVerde and Global Nature Fund

• Investment of EcoEnterprise Fund 2: Ecotourism in Peru
• Investment of Maderacre SAC: Sustainable forestry in Peru
• Investment of Oikocredit: Coffee farming in Nicaragua
• Investment of Verde Ventures Fund: Coffee farming in Guatemala and Mexico
• Investment of Waldmenschen eG: Sustainable forestry in Panama

Background

The preservation of biodiversity and the international forest protection require massive financial efforts. In times of scarce public funds, private funds are considered as a financing option. Besides typical offers of the grey capital market, new approaches that are termed as “Impact Investing” are now available. Impact Investments are investments made with the intention of generating social and/or environmental impact, as well as a financial return to their investors. The existing financing models are quite different and range from strong integration of local communities to international funds. The project aims to examine how environmental, social and economic aspects could be linked in privately financed and income-oriented investments to protect biodiversity und ensure a sustainable use of forest ecosystems.

Goals

• Identification of new and innovative financing mechanism for profit-oriented forest management,
• On Site case studies to analyze three til four of these mechanisms with regard to their ecological, social and economic impact,
• Generate recommendations to mobilize private funds in the long term for the protection and sustainable use of biological diversity in the forest sector.

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Analysis of new innovative Financing Mechanism for the Conservation of Forest and Biodiversity

May 2015 - Mai 2017

OroVerde – Tropical Forest Foundation

German Federal Agency for Nature Conservation (BfN), German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)