Request for Proposal - Nature Based Carbon Projects

Request for Proposal - Nature Based Carbon Projects

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Introducing Climate Asset Management

Climate Asset Management was formed in 2020 as a joint venture of HSBC Asset Management and Pollination, with the ambition to grow the world’s leading asset management company dedicated to natural capital.

 

We aim to provide investment solutions that are good for nature, people, and our planet.  Our investment strategies seek to work across landscapes to build resilience whilst generating returns.

Through our Natural Capital Strategy, we aim to deliver attractive, long-term risk return outcomes and create impact at scale by protecting and restoring vital biodiversity.

Through our Nature Based Carbon Strategy, we aim to unlock the supply of high impact carbon credits for corporates and investors seeking to achieve net zero.

Issued in the UK by Climate Asset Management Limited, authorised and regulated by the Financial Conduct Authority in the UK (FRN 944222) Registered address: 3 More London Riverside, London SE1 2AQ, UK.

Disclaimer: There is no guarantee that any product managed or advised by Climate Asset Management will invest in similar investments or achieve comparable, or any specific level, of returns.

The funding opportunity for Nature Based Carbon with Climate Asset Management

We are currently seeking proposals for high quality nature-based carbon removal projects that fulfil the following investment principles:

The project must:

 

  • generate net positive impact on the climate, surrounding community and biodiversity.
  • primarily focus on landscape restoration programmes, including biodiverse plantings of native species, agroforestry and mangroves.
  • support the resilience, and where appropriate, recolonization of native species to disturbed landscapes through improvements to ecosystem conditions.
  • protect lands with high conservation values.
  • use carbon accounting methods that are in line with international best practice. We are most familiar with forestry protocols from Verra, Gold Standard, Climate Action Reserve, and the American Carbon Registry.
  • apply a co-benefit impact standard such as the Climate, Community and Biodiversity Standard.
  • where forestry or agricultural commodities are being sold, apply a certification standard such as the Forest Stewardship Council, or Roundtable on Sustainable Biomaterials, or other equivalent standard.

The project must not:

 

  • result in conversion of native habitats or natural forests into plantations.
  • promote deforestation of primary forests or biodiversity hotspots or important conservation areas.
  • establish plantations in critical natural habitats.
  • allow introduction of non-native, invasive, or other species that are determined to be harmful to the local environment.
  • involve activities that are determined to materially pollute and/or contaminate the land, air and water.
  • promote illegal, unsustainable or adverse harvesting of natural resources, animals, plants, timber or non-timber forest products.
  • practise involuntary re-settlement, or contribute to social unrest due to land tenure issues and displacement of peoples.
  • materially adversely affect indigenous peoples, including but not limited to causing impoverishment and loss of identity, culture, and traditional or customary land use rights.
  • be in breach of international best practices with respect to human rights, labour and natural resource management.
  • be in breach of national, state/provincial and local laws and regulations, including those related to human rights, labour practices and natural resources.

Project Parameters

 

If the project aligns with these criteria, please consider the following parameters to further align the project opportunity with this RFP:

Investment Size
  • Target $10m – $30m per project.
  • With the potential to scale beyond the target investment size
Investment Structure
  • Upfront investments in return for the future delivery of carbon credits.
  • Equity investments will be considered for commercially viable projects.
Development Economics
  • Projects will be assessed based on the development cost of removal credits generated through to 2037.
  • Projects able to leverage other sources of finance, for example matched funding or revenue streams beyond carbon, will be prioritised.
Investment Timing and Term
  • Investment funding is available for immediate deployment, to be repaid in carbon credits delivered before the end of 2037.
  • Projects able to deliver credits early within the term will be prioritised and the value of carbon credits beyond 2037 can be considered.
Stage of Development
  • Projects at all stages of development will be considered, including pre-feasibility opportunities if they are investment-ready.
  • Established carbon projects with expansion propositions that can scale a proven activity are attractive.
Project Developers
  • Developers must be able to demonstrate a track-record of success.
  • Evidence of excellent community relationships and local relevance.
Government Engagement
  • Government involvement via Public Private Partnerships is appealing, although Government involvement is not required.
  • At a minimum, the Government needs to be informed with no objections to the project activities.
Country Focus
  • Emerging markets including within Latin America, Africa and Asia.
  • Tropical and sub-tropical regions with fast biomass growth rates.
  • Specific priority will be given to projects in China and India.
Country Blacklist
  • All comprehensively sanctioned countries, plus Myanmar.
  • All locations would be subject to a travel risk assessment.
Methodologies in Scope
  • All nature-based methodologies generating removal credits from landscape restoration will be considered.
  • Projects generating both removal credits and avoided emissions credits will also be considered.
Methodologies out of Scope
  • Purely avoided emissions projects are out of scope.
Carbon Vintage
  • Credits generated from 2020 onwards represent the target vintage.

Next Steps

 

If your project meets these investment criteria, we encourage you to submit a proposal before the 15 August 2023 deadline.

The initial selection of projects is scheduled to be made by the end of the summer. However, please note that proposals can still be submitted after the deadline and will be continuously evaluated.

To access the “Project Proposal Form” template for the comprehensive proposal submission, you can download it directly from this page. Once completed, kindly send the completed form to the following address: projectproposals@climateassetmanagement.com

Upon receipt of the proposals, our internal teams will engage in the process of selecting project opportunities. These projects will undergo a thorough evaluation and selection procedure.

Upon selection, Climate Asset Management will initiate communications with each project proponent to discuss the commercial terms of the funding proposal.

Thank you for your interest.

Download Project Proposal Form

 

Contact investment team.

Climate Asset Management’s investment solutions are designed for institutional investors seeking access to natural capital investments and corporates transitioning to net zero.

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