FUNDAECO announces financing from direct, carbon-backed bond facility completed by AXA IM Alts
Guatemala City, March 18, 2022 – The Foundation for Eco-development and Conservation (FUNDAECO) and AXA IM Alts, a global leader in alternative investments, have partnered to implement a carbon-backed Bond for the protection of critical ecosystems and the sustainable development of the Caribbean region of Guatemala. The bond has been designed specifically to finance nature conservation; demonstrating innovative ways for capital to be channeled to nature-based solutions.
Emissions from deforestation and land degradation are cumulatively responsible for around 20% of GHG emissions. Beyond the critical contribution to climate mitigation and adaption, forests play a fundamental role in water provision, biodiversity conservation and community livelihood.
FUNDAECO works with forest owners to provide improved protection for tropical forests in Guatemala, a critical ecological link in the Mesoamerican biodiversity corridor which connects the forests of South America with North America.
“The idea of using future projected revenues from payments for Environmental Services such as Carbon Credits, both as collateral and as a payback mechanism for the issuance of Bonds, is potentially very powerful. In the future, other environmental services may be used in this manner to increase the level of finance for the protection and restoration of nature” says Mr. Marco Cerezo, Founder and General Director of FUNDAECO.
The investment completed by AXA IM Alts, through its Impact strategy, will enable FUNDAECO to continue its efforts to protect the rainforests of the Conservation Coast in Caribbean Guatemala, including financing and expanding the largest grouped project of forest conservation conducted under the auspices of the REDD+(1) programme. It will also contribute to FUNDAECO’s work on community development, access to health, access to sustainable development projects, access to basic education for young men and women; as well as to continue biodiversity conservation actions.
Jonathan Dean, Head of Impact Investing at AXA IM Alts, comments, “We believe this investment provides a useful demonstration of how financial innovation can channel capital to support nature at scale. The proceeds will support FUNDAECO in its continued efforts to expand and execute on its projects to protect critical forests in Guatemala. FUNDAECO’s work closely aligns with one of our Impact objectives – to promote and conserve natural capital, protect biodiversity and mitigate against climate change.”
FUNDAECO Media Relations
Griselda Pacheco
g.pacheco@fundaeco.org.gt
www.fundaeco.org.gt
About FUNDAECO: FUNDAECO is a Guatemalan organization founded in 1990 (31 years ago) with the objective of promoting the conservation of natural ecosystems and their environmental services, working in collaboration with more than 200 rural communities in support of the sustainable development of the country.
- Source: REDD+ is a programme created by the UNFCCC Conference of the Parties (COP) to guide activities in the forest sector that reduce emissions from deforestation and forest degradation in developing countries.
