Canada Pension Plan Investment Board and Conservation International today announced a new partnership to invest in nature-based climate solutions. CPPIB will commit an initial $20 million, while Conservation will commit $500,000. The first project identified by the partnership is Amarakaeri Communal Reserve in Peru, a home to rare plants and endangered animals.
TORONTO and ARLINGTON, VA, Oct. 5, 2021 /CNW/ – Canada Pension Plan Investment Board (CPP Investments) and Conservation International today announced a new partnership to invest in nature-based climate solutions. CPP Investments will initially commit US$20 million and Conservation International will commit US$500,000 to this first-of-kind partnership between a global asset owner and a well-established environmental NGO for investments in nature-based solutions within the voluntary carbon market.
Through the partnership, CPP Investments and Conservation International will invest in local communities to support the development of high-quality projects that reduce global carbon emissions; enable the private sector to purchase certified carbon credits generated by each project; and provide a return to investors. The initial focus will be projects in Brazil, Chile, Peru and Colombia that, when completed, will be verified under the Reduced Emission from Deforestation and Forest Degradation (REDD+) program, a United Nations-backed framework that aims to curb climate change by stopping the destruction of forests. In addition to these REDD+ projects, the partnership will also invest in other innovations in the field of nature-based climate solutions.
“Global demand for high-quality carbon credits is expected to increase significantly as companies seek to achieve carbon neutrality,” said Bruce Hogg, Managing Director, Head of the Sustainable Energies Group at CPP Investments. “We’re very excited to form this unique partnership with Conservation International, one of the world’s leading conservation organizations with a strong scientific focus and operating expertise. This new partnership adds to our investments in important and growing industries that help enable the energy evolution through our Innovation, Technologies and Services strategy, in support of our Sustainable Energies program and overall investment mandate.”
All projects will meet rigorous quality standards that ensure the carbon benefits are verifiable and address issues such as:
Additionality – the carbon reductions or removals would not have happened without the project;
Permanence – the risk mitigation of emissions reversal; and
Leakage – the reductions will not result in corresponding emissions increases in other locations.
“Together with CPP Investments, we’re setting our sights on projects that protect nature, reduce emissions, provide sustainable sources of income for local communities, and at the same time are economically attractive. That’s a win-win-win for companies committed to decarbonization, people and the planet,” said Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International. “Our aim with this partnership is to make carbon markets work for the communities that are helping to protect nature and fight climate change.”
The partnership has identified a pipeline of potential projects that have the possibility of protecting over 20 million hectares and avoid over four million metric tons of CO2 emissions each year – the equivalent of taking approximately 870,000 passenger vehicles off the road annually.
The first project identified by the partnership is the Amarakaeri Communal Reserve in Peru, a REDD+ project. Located in the Madre de Dios region, the Amarakaeri Communal Reserve includes over 600,000 hectares of forest and is home to rare plants and endangered animals, such as the black spider monkey, giant otter and military macaw. The project’s estimated lifespan will be 30 years, with expected average annual emissions reductions of approximately 220,000 to 360,000 metric tons of CO2 – the equivalent of taking approximately 50,000-75,000 passenger cars off the road each year. Carbon credits generated by this project will be marketed on the voluntary carbon market.
Over time, CPP Investments and Conservation International plan to scale the partnership and bring on additional investors to lead large-scale, global development of nature-based climate solutions.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2021, the Fund totalled C$519.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.