BUILDING PROSPEROUS FUTURES
Our survival, prosperity and wellbeing are inextricably linked with nature. Investment in nature preservation is imperative, not only for biodiversity and climate stability, but also for addressing poverty and inequality and safeguarding ecosystems that support livelihoods. The Kunming-Montreal Global Biodiversity Framework (GBF) was adopted by 196 Parties to the Convention on Biological Diversity at COP15 in December 2022. It is a major milestone in the international effort to halt and reverse the loss of biodiversity and to contribute to nature-based solutions, beginning a new era for nature in the way the 2015 Paris Conference did for climate.
The framework calls on actors across society and our economies – including financial institutions in the public and private sectors – to work together to transform our relationship with nature. Among the highly significant goals set through the GBF is Target 19, calling for a substantial increase in public and private financial resources – an estimated annual investment of USD800 billion by 2030.
NURTURING PROSPEROUS LANDSCAPES
At Peace Parks, our primary role transcends merely bridging financial gaps. We are pioneering new financial models. In the past, Peace Parks has raised more than 95% of its funding through grants. To ensure financial sustainability, we seek to reduce this dependency by 30% by 2030. Fundamental to our approach is bolstering the investment readiness of landscapes. We create environments that are conducive to investment, emphasising improved governance and stability. This is coupled with harnessing sustainable cash flows from, for example, the burgeoning tourism sector. Our projections on tourism revenue development suggest that by 2030 to 2042, we anticipate reaching a break-even point in our primary conservation zones.
By deploying innovative conservation tools such as carbon credits, biodiversity credits, and payments for ecosystem services, we establish foundational investment structures tailored for conservation. These concerted efforts not only aim to uphold the natural resources crucial for economic and livelihood stability but also protect our precious wild spaces. By developing conservation solutions, we aim for a symbiotic relationship where economic benefits, derived from these endeavours, are consistently reinvested into environmental protection. To achieve this vision, we are cultivating a robust pipeline of bankable projects.
THE RESTORATION FUND
The UBP Biodiversity Restoration Fund (UBRF), a pioneering venture between Union Bancaire Privée (UBP), Peace Parks Foundation, and the Cambridge Conservation Institute (CCI), introduced a novel approach to conservation financing. Unlike traditional donation-based models, this equity portfolio champions nature by investing in companies dedicated to safeguarding and rejuvenating the planet’s species and habitats.
Notably, UBP’s management fee, derived from ensuring positive returns for clients, allocates a portion directly to its project partners. This innovative model leverages the financial market for conservation, ensuring clients incur no additional charges. Furthermore, in collaboration with South African financial entities, we are delving into the possibilities of local African Conservation Bond structures. These trailblazing initiatives are poised to establish scalable models, amplifying biodiversity finance avenues. In doing so, they equip regional financial players with the expertise essential for future conservation bond offerings, fortifying our commitment to a sustainable future.
