Stay in the know about climate impacts and solutions. Subscribe to our weekly newsletter. Yale Climate Connections Thinning dense forests can help reduce the risk of intense wildfires as the climate warms. But getting forest restoration work funded can take a long time – and hold up this critical work. So the nonprofit Blue Forest created a new approach to financing projects. Anna Yip of Blue Forest says private investors fund what’s called a forest resilience bond. It provides the upfront capital needed for the Forest Service or other partner to do the restoration work. Yip: “The financing dollars allow for the implementation to happen at a faster pace.” The money is repaid over time by utilities or companies that benefit financially from a healthier forest. For example, a bond for a forest thinning project in California’s Sierra Nevada will be partially repaid by the local Yuba Water Agency. With fewer trees sucking up water on the landscape, more water can seep into streams that feed reservoirs, so the project is expected to boost water supplies and hydroelectric power generation downstream – which translates to revenue for Yuba Water. Yip: “They were able to see a net cost savings overall, even though they were investing dollars into this effort.” So Yip says this funding model can help speed up the process of creating fire-resilient forests. |