Growing the investment opportunity for restoration

NYDF Global Platform All Topics Restoration and Reforestation Growing the investment opportunity for restoration

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    Nicole DeSantis
    Nicole DeSantis
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    @nicoledesantis

    Forest and land degradation is estimated to cost more than US $6 trillion worldwide each year. Financing for restoration is urgently needed to support climate change mitigation and adaptation, conserve biodiversity, and accelerate achievement of the Sustainable Development Goals. There is growing recognition that restoration of degraded forests and agricultural lands is an investment opportunity and that hundreds of companies are forming a “restoration economy.” WRI’s recent report notes seven reasons investment is falling short for restoration, including the long investment time horizon for restoration (often 10-20 years), which can limit investor interest as well as increase perceptions of risk associated with restoration projects due to the limited track record.

     

    How can we best address these barriers to private finance, including the challenge of the long time horizon for restoration investment projects, and what lessons and best practices have you identified?

    How can we balance the upfront costs of restoration with the long-term multiple benefits to grow investment in order to address perceived risk?

     

    Resources:

    TNC (2018) The Business of Planting Trees: A Growing Investment Opportunity

    WRI (2017). Roots of Prosperity: The Economics and Finance of Restoring Land

     

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