The objective of this study is to investigate the feasibility of a financial instrument which results in more sustainable management of forests and at the same time fits in the portfolio of international capital markets investors. This financial instrument needs to contribute demonstrably to a reduced rate of deforestation and to alleviate poverty, while at the same time generating returns which appeal to a fund manager.

The research has been funded by the UK’s Department for International Development and supported by the International Finance Corporation.

The project is exploring how ecosystems services – the currently largely unvalued benefits which we get from forests in terms of carbon sequestration, biodiversity, landscape value, social and cultural value, flood protection, subsistence livelihood support and so on – may be used to augment the value of a bond.

Press articles on this piece of work can be found here:

• The New-Eco Warriors (The Banker)
• ‘Eco-securitisation’ mulled to protect forests (Environmental Finance News)

For more information please visit www.ecosecuritisation.com or contact Alice Chapple at a.chapple@forumforthefuture.org.uk