Funded in part by The Rockefeller Foundation, the Forest Resilience Bond is a timely and effective example of a social impact bond—a form of innovative finance popularized by Dr. Rodin and her work with The Foundation.
What’s good for the planet can also be good for your portfolio.
ISSUE
Forests, like many other natural resources, often do not receive the investment needed to face their growing environmental challenges. Innovative Finance has shown us that private capital can and should play a role in building a more sustainable future by closing the financial investment gap between what is currently invested in sustainability and what is needed to adequately protect the world’s ecosystems.
SOLUTION
Establishment of The Forest Resilience Bond: a public-private partnership that enables private capital to finance much-needed forest restoration across the western U.S. Investors provide upfront capital with public and private beneficiaries, then make contracted payments based on the water, fire, and other benefits created by the restoration activities provided by empirically-validated mitigation interventions.
IMPACT
Forest restoration has numerous tangible impacts, including: water security, reduction of wildfire severity, reduction of carbon emissions, and watershed and community resilience. Job creation and protected homes, lives, and livelihoods make rural communities more resilient, and preservation of recreational, historical, and cultural resources ensures national forests can be enjoyed by all for generations.
