Investor launches $25 mln funding round to protect Amazon biodiversity and land-use, considers credits

Published 18:04 on November 30, 2022  /  Last updated at 03:26 on December 4, 2022  /  Biodiversity  /  No Comments

UK-headquartered Amazonia Impact Ventures (AIV) has launched a funding round with the aim of raising $25 million for impact-linked investments to tackle climate change by protecting the Amazon rainforest and its biodiversity, the firm announced this week, and will also consider potential biodiversity crediting in the future, its co-founder told Carbon Pulse.

UK-headquartered Amazonia Impact Ventures (AIV) has launched a funding round with the aim of raising $25 million for impact-linked investments to tackle climate change by protecting the Amazon rainforest and its biodiversity, the firm announced this week, and will also consider potential biodiversity crediting in the future, its co-founder told Carbon Pulse.

AIV, which invests in the protection of the Amazon Rainforest, has called for funding in its blended finance approach that combines results-based capital and technical assistance with indigenous communities to improve sustainable land use and increase biodiversity.

It has already invested $4.5 mln in Indigenous enterprises and SMEs across the supply chain for responsibly-grown commodities as part of a sustainable land use drive across Peru, Ecuador, and Colombia covering 200,000 hectares.

The new call for funding aims to help the firm improve sustainable land use to over 1 mln hectares of rainforest.

“Our $25 million funding round is an exciting opportunity for investors, impact enterprises, and indigenous communities alike,” said AIV co-founder Pajani Singah.

Singah confirmed to Carbon Pulse that the firm was looking to grow the investments to $100 mln in the next 5 years in order to address larger areas of the Amazon.

“This latest funding round will help demonstrate that if capital flows are deployed correctly, it can have an immense impact on the communities, nature, and the forest’s economy,” he added.

As for crediting the work being done in the Amazon via nascent biodiversity credits, Singah said that the firm is considering its options.

“We are exploring every avenue that helps to show standing forests have more value than unsustainable land uses. Innovation is in our company’s DNA, and we certainly will be looking for opportunities to invest in companies innovating in this field,” he told Carbon Pulse

“AIV intends to trial where possible if its work and conservation efforts can help communities protecting the Amazon biome benefit from biodiversity credits.”

Only 7% of investment in the Amazon goes to indigenous communities directly and only 1% of all climate finance categorised as official development assistance (ODA) – often called foreign aid – heads there.

AIV aims to provide a conduit for these types of investments to flow it directly to forest and biodiversity conservation.

The round of funding was announced on the eve of the UN’s annual biodiversity conference (COP15) at which nations will negotiate on whether to set a potential nature positive target by 2030 and mandatory corporate disclosures on their biodiversity impact.

By Roy Manuell – roy@carbon-pulse.com