I. Equator Environmental will create a $100 million private equity fund to make investments in wetlands mitigation, endangered species conservation, carbon sequestration, water quality, and other ecosystem-based projects, and to monetize the value of such projects. All investments will be based on land, forest or vegetation-based projects in North America.
Ecosystems provide many of the services upon which the global economy depends, such as water purification, biodiversity conservation and atmospheric climate regulation. Globally, approximately 60% of 'ecosystem services' provided by nature are being used unsustainably or are in decline. Over the past twenty years, the amount of developed land has grown by 50% in the United States through increasing population and urbanization, creating pollution, water quality and other environmental problems. The weight of the economy on the natural infrastructure of the U.S. has led to the pricing of ecosystems services. Equator Environmental believes that by establishing a fund to invest in projects that preserve and enhance the viability of our ecosystems, we can have a direct impact on the preservation of our ecological assets. Equator also believes that by monetizing such assets through the creation of environmental credits and other 'eco products', we will be able to enhance the market value of our ecosystems, and create further incentives for environmental conservation.
II CGI's tremendous leadership over the past two years on environmental issues has helped inspire Equator Environmental to launch this fund, which is the first of its kind.
Measures of Success: Measures of success may include the growth of nascent markets (carbon, biodiversity, endangered species and water), creation of new financial platforms and instruments for these markets, and a rise in public awareness.
Anticipated Launch: December, 2007
First Milestone(s): Invest in at least one of each: terrestrial carbon sequestration project, wetlands mitigation project, endangered species project.
Participants in this Activity: Members of Equator Environmental, LLC and New Forests Inc.
The Eco-Products Fund will be jointly managed by Equator Environmental LLC and New Forests Inc. Equator and New Forests bring together critical areas of expertise in underlying scientific and technical disciplines and in financial structuring, trading and commercialization of assets. In addition, the partnership creates a one stop shop with strengths in sourcing/origination, transaction management, and distribution.
SEEKING: implementing partners, best practices information.
OFFERING: financial resources, implementing partners, best practices information, media and marketing assistance.