FRB Report

A roadmap for collective action

Can you imagine the world without clean water and fresh air? Neither can we.

In one way or another, every single person on this planet relies on forests to survive. But forests, like many other natural resources, often do not receive the investment needed to face society's growing environmental challenges.

Private capital can and should play a role in building a more sustainable future. We just have to give investors the tools.

Choose a format

Download Report Explore Online

Forest Resilience as an Investment

Part I of the Roadmap report consists of three sections that introduce the need for forest restoration, the many stakeholders affected, and the market for conservation finance. As a whole, Part I provides an overview of the supply and demand of forest restoration. The supply is the market for conservation finance and the investors that comprise it, and the demand is the need for forest restoration itself.

The Need for Investment in Forest Health

Section 1 establishes the demand for investment in forest health and details how funding would be deployed for restoration activities.

Profile of Stakeholders

Section 2 profiles the stakeholders involved in the Forest Resilience Bond (FRB) including beneficiaries of forest restoration and the numerous other groups working together to enable private investment in forest health.

Introduction to Conservation Finance

Section 3 proposes a potential supply of investment in forest health by introducing conservation finance and detailing how to facilitate a market for investing in the environment.

The Forest Resilience Bond

Part II covers the current structure of the FRB. Following the supply and demand framework from Part I, Part II establishes how the FRB specifically enables the supply of investor capital to meet the demand for forest restoration. At its core, the FRB’s combination of measurement, contracting, and financial structuring is what bridges the gap between private capital and forest restoration. As such, Part II is separated into three sections that detail each component.

Measurement and Valuation of Benefits

Section 4 explains potential approaches to measuring the ecosystem services and other impacts of forest restoration and how such benefits provide value to stakeholders.

Contracting with Beneficiaries

Section 5 describes how measured benefits will be monetized through contracts with beneficiaries.

Financial Structuring

Section 6 details how contracted cash flows from beneficiaries can be structured as payments to investors with an acceptable level of risk and return.

Reflections and Recommendations

Part III reflects on the FRB by examining risks, the development process, and the next steps to bring this financing to market.

Risks and Considerations

Section 7 explores the risks and considerations expected for the FRB and strategies for risk mitigation.

The Development Process

Section 8 outlines a suggested process for other project developers to follow when developing financial vehicles based on environmental outcomes.