Blue Forest Conservation is working to create the Forest Resilience Bond - an institutional quality investment vehicle to allow private capital to fund forest health. Investor returns are generated through a mix of traditional infrastructure-like contracted cash flows and pay-for-success (PFS) contracts that monetize the diverse benefits of forest restoration including the protection of water quality, increased water yield and reduction in fire severity and carbon emissions. By bringing together the US Forest Service, local water and electric utilities, and state governments, they allow these entities to share the costs of forest restoration by paying only for the benefits received.
Upon execution, this deal will be the first outcomes-based security in the environmental space, which aims to tackle two of the most pressing environmental challenges in California and throughout the western US - drought and severe forest fires. They have identified numerous watersheds requiring billions in investor capital, which will provide deal flow in perpetuity as this intervention can be recycled every 10 years.
Blue Forest work is supported by the Rockefeller, Packard and Fink Foundations and they are proud to partner with Encourage Capital, the World Resources Institute and the American Forest Foundation. They have already made significant progress and have engaged a broad mix of potential investors and stakeholders, including CalSTRS, US Forest Service, Bureau of Land Management, and East Bay Municipal Utility District.