This summer, California experienced its largest fire in state history—the latest disaster in a growing trend towards hotter, larger, and more destructive fires. Without urgent action, wildfires will be even deadlier and costlier in years to come. The Forest Resilience Bond (FRB), developed by Blue Forest Conservation (BFC) in partnership with World Resources Institute (WRI), raises private capital to finance forest restoration today, to reduce the risk of severe fire tomorrow. With financing secured from The Rockefeller Foundation, the Gordon & Betty Moore Foundation, Calvert Impact Capital, and CSAA Insurance Group, private capital will now fund the upfront costs of forest restoration, while multiple beneficiaries share in the cost of reimbursing investors over time. This marks the progression of the FRB from an innovative idea to a tangible solution for scaling investment in forest health and mitigating wildfire risk.
“If everyone contributes a little bit towards forest health treatments, a great deal of benefit, both ecologically and economically, will be realized by all”, explained Todd Gartner, Director of the Natural Infrastructure Initiative at WRI.
The investment will kick off a forest restoration project protecting 15,000 acres of forestland in the North Yuba River watershed using ecologically based tree thinning, meadow restoration, prescribed burning, and invasive species management—all specifically designed to reduce the risk of severe fire, improve watershed health, and protect water resources. The restoration treatments are prescribed by the Forest Service, benefit from public comment, and rely on the work of existing restoration crews.
“There is overwhelming need for cost-effective climate solutions to help communities dealing with the dual threats of mega-fires and droughts. The Rockefeller Foundation is proud to support the Forest Resilience Bond, which demonstrates the importance of infusing the market with new thinking and new capital through attractive, investable financing mechanisms,” said Saadia Madsbjerg, managing director at The Rockefeller Foundation.
The Yuba Water Agency, a utility provider that recognizes the benefits of restoration to local water and power resources, has committed $1.5 million over five years to reimburse investors. In addition, the state of California has committed $2.6M in grant funding to the project from the state’s Climate Change Investment program. The Tahoe National Forest will provide in-kind support and services and has provided all the resources associated with planning and permitting the project. The National Forest Foundation serves as one of the project’s primary implementation partners, leading much of the forest restoration work on the ground.
Read more on this from YubaNet.com at https://yubanet.com/regional/forest-resilience-bond-to-help-fund-4-6-million-restoration-project-to-mitigate-wildfire-risk-in-tahoe-national-forest/.