Unlocking Nature's Potential: Accelerating Climate Solutions through Early-Stage Funding

Amidst the challenges of an increasingly warming climate, Conservation International has established the Natural Climate Solutions (NCS) Technical Assistance Facility (TAF) to protect and restore carbon-rich natural ecosystems across Asia-Pacific.

The TAF is donor-funded but is designed to act as an accelerator for NCS initiatives in the region, offering financial support to high-impact opportunities that struggle to secure immediate development funding. The TAF's strategic focus on early-stage NCS projects and capacity-building endeavors to fast-track a pipeline of high-quality NCS opportunities in the region, which the broader investment market has identified as a core bottleneck in scaling private sector funding into NCS. ?In so doing, we aim to preserve high-priority natural habitats and harness their potential in the fight against climate change.

At its core, the NCS TAF addresses a critical shortfall in early-stage funding for NCS projects. While the significant contribution (over 30%) that nature could provide to climate mitigation is now widely acknowledged, only a disappointing 3% of current climate finance is directed towards these initiatives. Moreover, the majority of any available commercial capital tends to focus on later stages of project development, when risks are lower, leaving a gap in funding for crucial origination and early-project design activities.

This gap is where the TAF steps in, offering vital support for the sourcing, screening, assessment, and other essential enabling conditions necessary for impactful, high-quality NCS projects.

Through the generosity of our funding partners, the TAF continues to expand its remarkable portfolio of projects, allowing us to increase the number of places where we work to protect or restore natural systems for the benefit of local biodiversity, local communities, and global climate.

The objective of the TAF is clear: to pave the way for credible emissions reductions or removals by supporting high-quality projects and providing the necessary financial backing and technical expertise they need to succeed. In doing so we accelerate the development of a high-quality NCS project pipeline across Asia Pacific that not only meets market demand but also establishes robust performance standards, bolstering confidence in NCS supply.

By bridging the financing gap for nascent projects and reducing the investment risk?in NCS for commercial finance providers, the TAF offers a recycling mechanism that, as the market matures, should be able to provide a cycle of financial sustainability. As projects mature and attract long-term investment funds, the grant capital is reinvested, fueling new project opportunities. This model diversifies our portfolio and encourages innovation and self-financed expansion.

Our approach is comprehensive, prioritizing projects based on their climate mitigation outcomes, estimated co-benefits to community and biodiversity, and local implementation partners' capacity. Moreover, we continue championing the critical technical, scientific, financial and policy functions essential for delivering impactful outcomes.

The success of the TAF hinges on collective support. As we navigate the challenges posed by climate change, your involvement, whether through funding or advocacy, can make a tangible difference in accelerating the delivery of high-quality NCS projects.

Since the landmark study by Conservation International climate scientist Bronson Griscom, more governments and businesses are now including NCS in their climate commitments. In the latest blog, he discusses the key principles of an effective natural climate solution. Read more here.