My friend and colleague Suhit Anantula has brought to my attention an innovative approach to preserving redwood forests, reported in The San Francisco Chronicle. A company incorporated for the venture, the Redwood Forest Foundation Inc, secured full financing from the Bank of America to purchase a logged fir and redwood forest north of San Francisco. It appears that the loan will be repaid through two income streams: sustainable logging, beginning 8 years down the track (to allow for forest regeneration); and the sale of easements to various environmental and conservation groups, presumably for rights of access and other uses as benefits. Differential interest and capital repayment regimes are often applied to this kind of environmental finance, to allow for the lags that ecological systems require. A wonderful example of using business structures to finance beneficial environmental outcomes.
Report from The San Francisco Chronicle link here.
Suhit’s sustainability blog is found here.