The scale of private forest land ownership indicates that its managers have significant influence on both the environmental and economic services forests provide. However, the timber investment industry is facing a new set of challenges — challenges that may dictate a turn to a new set of business strategies.
This article is the second of a two-part series focusing on the challenges and opportunities of incorporating conservation finance into traditional investment portfolios. CFN spoke to investment advisors about strategies for overcoming major barriers. Increased interest in impact opens opportunities for greater incorporation of conservation finance into traditional investment portfolios across a variety of scales, from small retail to large institutional.
This two-part article series explores the challenges of and opportunities for incorporating conservation finance into traditional investment portfolios. In Part 1, various current and former investment advisors with deep knowledge of impact finance discuss the challenges of integrating conservation investments into traditional investment portfolios.
In September, The Conservation Fund announced the closing of its $150 million green bond. The environmental nonprofit offered the 10-year notes in order to expand its Working Forest Fund. CFN spoke to Conservation Fund CEO Larry Selzer about how the organization will use bond funds, the experience of offering a bond as a nonprofit, and the significance of the project for the conservation finance field.
Traditionally, conservation efforts raise funding for projects and actions in the hope that those activities will result in desired outcomes. This Toolkit explores Pay-for-success financing, an alternative approach. This model ties funding for conservation to project outcomes, incentivizing the achievement of objectives and shifting risk away from public agencies and conservation organizations that implement on-the-ground work.