A workshop to build replicable investment models for nature conservation brought together more than 40 professionals from the financial market and the investment and conservation sectors on Wednesday, January 31, to discuss the financing gaps that exist for sustainable businesses. During the meeting, promoted by Conservation International (CI-Brazil) and Sitawi Finanças do Bem, previews of the so-called blueprints, replicable business models focused on nature conservation and climate.
The creation of blueprints is an unprecedented initiative in Brazil and aims to contribute to discussions on paving possible paths where investors can allocate financial resources and obtain profits by generating socio-environmental benefits. The three blueprints discussed at the event focused on bioeconomy cooperatives, forest restoration and biodiversity production chains.
“We work to create a favorable business environment for private investments to promote the valorization of forest products and services. However, to unlock this financial flow, it is necessary to understand gaps and define the enabling conditions for this paradigm shift. And, it is necessary to learn from the financial market how to polish these good ideas into business models that are attractive to commercial capital,” explains Miguel Moraes, Senior Director of Programs at CI-Brasil.
The event aimed to present a preview of the blueprints and collect technical input to improve replicable investment models. The contributions and strategic insights will be incorporated into the next stage of the project, which will work on consolidating the blueprints for later public release.
“The workshop was essential to evolve in the structuring of blueprints investment in nature conservation, as it was possible to discuss and validate the proposed structures with various stakeholders from the financial sector. Participants ranged from philanthropic organizations, which are more concerned with positive results in conservation, to impact investors, to more traditional stakeholders from the financial sector, such as banks and venture capital funds. I see that there is room for everyone, depending on the business model that is designed. However, in my view, the most important thing is for the various stakeholders to work together. This way, the return and impact needs can be met”, says Fernando Campos, Conservation and Climate Finance Manager at Sitawi.
Pathways to combat the climate crisis
The severe impacts caused by the climate crisis are already part of life on the planet. Climate scientists estimate that the consequences of the crisis will intensify if concrete measures are not adopted by governments, companies, academia and society to achieve the goals established in the Paris Agreement and the Global Biodiversity Framework. Among the necessary measures is the development of a low-carbon economy that protects nature. However, one of the challenges encountered in this process is the gap in financing for biodiversity and climate through sustainable businesses.
The event was promoted by the “Forest Finance and Investment Incubator” project, which aims to facilitate the flow of private investment for climate strategies, mainly related to forests and land use. The project is led by Conservation International in partnership with the Global Green Growth Institute, has technical support from Sitawi and is funded by the US Department of State.
