CPIC Blueprint Forest Resilience Bond by Blue Forest Conservation

Healthy forests maintain clean and abundant water for human consumption, irrigation, industry, and power generation. They also control flooding, sequester carbon, support biological diversity, sustain rural economies, and provide opportunities for recreation. However, the impacts of wildfire, drought, flooding, and insect and disease disturbance are increasingly severe as the consequences of a changing climate and growing development pressures leave forested landscapes vulnerable.

The Forest Resilience Bond (FRB) provides a means to engage private sector investment in work to fund ecological restoration activities that reduce fire risk. By reducing fire risk, forest health treatments protect lives, property and habitat from the devastation of large-scale burns, prevent carbon stored in tree biomass from being released into the atmosphere, and keep sediment from ash, debris and erosion from impacting water quality and heightening treatment costs. Thinning forests also frees up water consumed by overly-dense vegetation to flow downstream for drinking, irrigation, industry, and hydroelectric power generation.

Using an investment structure comparable to infrastructure project financing, the FRB relies on contracted cash flows to monetize the ecological and social outcomes associated with forest restoration. The FRB accelerates the pace and scale at which restoration activities can be undertaken by raising private capital to fund the full cost of restoration upfront. For further details please read the full Blueprint developed based on the case study of Blue Forest Conservation.​