Developing market based solutions to address climate change, deforestation, and land use change.

Climate and Forest Capital, LLC is a mission-driven investment management firm focused exclusively on developing and managing financial products and solutions to address climate change, deforestation, and land use change. CFC seeks to leverage private capital in blended-finance solutions that provide a financial return to investors while also delivering quantifiable environmental and social impact outcomes.

To solve the global climate crisis, we must solve the deforestation crisis.

 

Deforestation and forest degradation contribute 15 to 20% of annual global greenhouse gas emissions and are proven to be one of the most cost-effective opportunities to mitigate emissions globally.[i]  Tropical forests, with their vast stores of carbon, also provide crucial biodiversity and sources of livelihood to indigenous peoples and other forest-dependent communities.

 
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The Challenge

To stop deforestation, there must be a way for forest landowners, communities, and governments to realize at least some of the value of thriving forests and to finance the transition to sustainable agricultural and rural economic development.

Jurisdictional REDD+ provides the mechanism for protecting these forests at scale. Reducing Emissions from Deforestation and forest Degradation (REDD+) is a global policy framework created to provide forest countries with a positive economic incentive and source of finance to minimize GHG emissions from deforestation and forest degradation.

However, while forests continue to disappear, private investment in REDD+ sits on the sidelines.

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The Solution

The REDD+ Acceleration Fund’s innovative design addresses the main barriers to accelerating the flow of private finance into jurisdictional REDD+.

By combining both policy engagement and an investment vehicle, the RAF will give confidence to policy makers and regulators, thereby accelerating acceptance into compliance markets, while also supporting investment in the supply of jurisdictional credits through sending a tangible signal of demand.

The RAF will be the first entity to show how high-quality credits can be credibly sourced and transacted for private compliance use.

Learn more about the REDD+ Acceleration Fund here.

Support for this work is provided by the David and Lucile Packard Foundation and Rockefeller Foundation.

[i] There are a range of estimates in the literature, leading to the 15-20% range: IPCC, Climate Change 2007: Synthesis Report, 2007; Van der Werf, Guido R., et al, CO2 emissions from forest loss, 2009; World Wildlife Fund, Zero Net Deforestation by 2020 - A WWF Briefing Paper, 2008.

The U.S. has 408 million acres of cropland and 614 million acres of rangeland.

 

The Challenge

These acres offer immense potential to achieve conservation goals. To date, there has been little private investment in emerging ecosystem markets.

To stimulate investment, a demand signal from compliance carbon markets and evidence of quality supply is needed. At present, the lack of this supply and demand signal is creating risk and holding back investors and regulators alike.

CFC, Encourage Capital, and the Environmental Defense Fund are working with partners including the American Carbon Registry, Climate Action Reserve and Bluesource under the Natural Resources Conservation Service’s Conservation Innovation Grant (CIG) to bring in private investment and jumpstart the market for agricultural offsets.

The Solution

This project will break down barriers that prevent agricultural carbon markets from scaling up by targeting both supply and demand.

Supply will increase by providing landowners with guaranteed compensation for implementing agricultural conservation measures, and supporting  project developers to create project pipelines.

The project will increase demand by creating the Working Lands Investment Fund (WLIF) to mobilize philanthropic and impact investors into agricultural carbon credits. The WLIF's innovative design will help create an early market for these credits.

To learn more or get involved please see the Contact Us page.

 
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