Ecosystem Restoration Fund
Project Developer
- Defensores de la Naturaleza Foundation (Fundación Defensores de la Naturaleza in Spanish) and OroVerde
Size
- Large
- (10000000)
Maturity stage
- Mature for investment
Country
- Guatemala and Germany
Financing mechanism
Contact
Melissa Cuevas Flores
mcuevasflores@oroverde.de
Link
Environmental benefits
The ecosystem restoration and improved forest protection efforts contribute to the preservation of crucial habitats for native biodiversity, particularly within the core zones of protected areas. Consequently, the project will make a significant contribution to safeguarding the forest in Guatemala. Additionally, the introduction and implementation of sustainable ecological cultivation and production methods effectively reduce deforestation, forest degradation, and associated greenhouse gas emissions. This represents an important contribution to climate protection efforts.
Community benefits
Ecosystem restoration provides economic, ecological, and social benefits for the local population in the protected areas, serving as models for Guatemala. The restored forests provide essential ecosystem services, including water quality, quantity, and non-timber products, improving the well-being of the population. Sustainable agriculture, including agroforestry systems, helps reduce communities’ heavy reliance on forest resources, diversify livelihoods, and protect Guatemala’s unique biodiversity. The Fund also aims to strengthen the local economy in the regions, generating additional income to improve healthcare and education.
Business model
The business model behind this idea involves leveraging a combination of public and private funds to capitalize the Fund. The objective is to ensure access to diverse and sustainable financial resources in the short, medium, and long term, while strategically directing them to areas where they can create the greatest impact.
In the initial stage, the Fund seeks capital from various sources. These include public subventions, proceeds from the sale of carbon credits, funds from international organizations, and donations from the Guatemalan private sector.
To ensure long-term sustainability, the business model explores additional revenue streams. This includes generating income from forest plantations, which can provide sustainable timber and non-timber forest products.
This model allows for a diverse mix of funding sources, leveraging public and private sector contributions. By diversifying revenue sources, this approach ensures a continuous flow of resources for forest restoration and protection efforts.