2030 Finance | September 30, 2019

The Conservation Fund issues $150 million green bond to save forests

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, September 30 – Trees are the best carbon capture tech on the planet. To ensure that vulnerable forests in the U.S. are preserved, The Conservation Fund is leveraging green bonds to finance the acquisition and protection of forestlands.

The non-profit conservation organization developed a green bond framework that it will use to support its work on the whole. Proceeds from its first bond offering will go towards its Working Forest Fund, which is looking to bring together philanthropic and private capital to secure one million acres of U.S. forests.

“By combining the power of the marketplace with the passion of philanthropy we aim to make a real difference in our nation’s efforts to protect forests, address climate change and lift up rural economies,” The Conservation Fund’s Larry Selzer said in a statement.

The past year has seen some creative impact structures go to work on behalf of global forest preservation. Lyme Timber raised $300 million for its fifth forest conservation fund. The Inter-American Development Bank made debt investments in Eco.business Fund, which invests in sustainable forests, fisheries and agriculture, and Ejido Verde, which protects and revives forests while building indigenous peoples’ livelihoods. The Packard Foundation took a concessionary “impact tranche” stake in New Forests’ Asia-focused forestry fund. And Blue Forest Conservation and World Resources Institute issued a $4.6 million “forest resilience bond” to proactively care for parts of the Tahoe National Forest.