Public Commentary: The insights below describe our approach to REDD+ project finance. They are for information only and do not constitute advice or a solicitation.
REDD+ Carbon Project Development – Avoided Deforestation & Forest Conservation
Tropical forests vanish at a rate of ten football fields every minute. Flip that script: pay communities to keep trees standing, sell the verified emission reductions, and everybody wins. We inject early capital, lock in forward offtakes, and shepherd monitoring so your hectares stay green and your cash flow turns from logging to carbon.
What Falls Under REDD+?
• Avoided Unplanned Deforestation (AUD):
Shielding intact frontier forest from encroachment.
• Avoided Planned Deforestation (APD):
Cancelled or modified logging concessions.
• Degradation & Sustainable Management:
Cutting impact, extending rotation cycles, eliminating illegal harvest.
• Community & Biodiversity Add-Ons:
Agro-forestry buffers, fire-break income schemes, wildlife corridors.
Our Five-Step Process
• Baseline & Leakage Mapping:
High-resolution satellite data, field plots, and socioeconomic drivers pinned down from day one.
• Capital Structuring:
Up-front pre-pays, mezzanine notes, or revenue-share equity that tracks issuance curves, not calendar quarters.
• Stakeholder Agreements:
Long-form benefit-sharing contracts, grievance channels, and gender-inclusive governance baked into the SPV.
• MRV & Certification:
LiDAR overflights, stratified biomass surveys, and validator coordination under VCS or ART TREES.
• Credit Placement:
Multi-year offtake strips to corporates hungry for high-integrity supply, backed by make-good clauses.
Key Metrics We Track
- Emission Reduction Density: 120–250 tCO 2 e per hectare over 30 years—terrain and threat level decide the number.
- Up-Front Funding: USD 3–6 per expected tonne, released against milestone closings.
- Credit Forward Price: USD 8–14/t in Year 0, stepping up with certification and delivery history.
- Community Revenue Share: 20–30 % of net credit proceeds redirected locally—non-negotiable.
Sample REDD+ Capital Stack
| Layer | Security | Cost | Backers |
|---|---|---|---|
| Senior Credit Stream | Pledge over issuance account, step-in rights | Fixed price USD 9/t | Carbon streaming vehicles |
| Mezz Revenue-Share Note | Second-ranking claim on sales | 12–14 % coupon + kicker | Impact funds, family offices |
| Developer Equity | Residual cash flows | 20 %+ target IRR | Concession holder, NGO sponsor |
Why Stakeholders Sign On
- Communities: Continuous income, protective employment, and funded social programs.
- Landowners & Governments: New revenue model that beats short-term logging payout.
- Credit Buyers: High-integrity supply with biodiversity and SDG badges already attached.
- Investors: Yield tied to avoided emissions rather than commodity cycles.
Ready to Keep Forests Standing?
Get in touch if you’re serious about turning at-risk hectares into bankable carbon revenue. Let’s map the ground, crunch the numbers, and lock down finance.
This post is informational only. It is not investment advice and does not constitute an offer to buy or sell any security or instrument.
