An innovative approach to green corporate bonds, supporting accredited developers of forest conservation projects in Southeast Asia and the Philippines, attracting ESG investors and family trusts. This initiative promotes avoided deforestation and afforestation, funded by green corporate bonds repaid through carbon credit revenues. Conservation efforts protect ecosystems, enhancing climate resilience by storing carbon and preserving habitats.

The need for more significant investments to protect and expand forests and biodiversity is widely acknowledged. Despite commendable projects aimed at addressing climate change through large-scale tropical forest preservation, many struggle to secure sufficient investment or well-structured loans. Even developers with solid credit and a track record of successful projects face challenges. The Voluntary Carbon Market, cited as inadequate for institutional investors, underscores the necessity for green bonds that appeal to a broader base of environmentally conscious individuals, non-profits, and family trusts, prioritizing forest and biodiversity protection alongside financial returns.

The Model Forest and Biodiversity Bond is a model for global project developers, focusing initially on the Philippines and Southeast Asia. Developed by Forest Carbon Pte. Ltd., the USD 10 million demonstration bond targets individuals, trusts, and NGO ESG investors. After the concept is proven, broader bonds aim for USD 500 million by 2027. It expands the ESG investor base, supports deforestation avoidance and reforestation equally, fosters biodiversity credits, and ensures project transparency. Tailored for high net-worth individuals and NGOs, bonds offer 8% interest, repaid from carbon, biodiversity, and eco-service credits, funding specified projects with certified afforestation, community revenue sharing, endangered species protection, and data transparency.

According to the proponent organization Forest Carbon Pte. Ltd, the idea proponent, the initial USD 10 million bond will safeguard over 150,000 hectares of old-growth forests in the Philippines and Southeast Asia. Scaling up, the model bond seeks to raise USD 500 million for project developers worldwide, preserve over 5 million hectares, protect critical habitats, and sustain unique wildlife. The model bond mandates that 20-30% of all funds benefit communities surrounding the projects.

*Banner photo credit: Jacob Maentz