As the climate warms, sparse and dense forests help reduce the risk of intense wildfires.
But funding forest restoration efforts can take a long time and hinder this critical work.
So the nonprofit Blue Forest created a new approach to project financing.
Private investors fund so-called forest resilience bonds, said Blue Forest's Anna Ye. It provides the Forest Service or other partners with upfront funding needed for restoration efforts.
Ye: “Financing funds can make implementation faster.”
Over time, the money will be repaid by utilities or companies that benefit financially from healthier forests.
For example, bonds for a forest thinning program in California's Sierra Nevada will be partially repaid by the local Yuba Water Authority.
With fewer water-absorbing trees in the landscape, more water can seep into the reservoir's streams, so the project is expected to increase downstream water supply and hydropower generation, which will generate revenue for Yuba Water Company.
Yip: “Even though they’re investing money into it, overall they’re still able to see a net cost savings.”
So Yip said this financing model could help speed up the process of creating fire-resistant forests.
Report source: Sarah Kennedy/ChavoBart Digital Media
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