The sustainable management and conservation of tropical forests represents one of the most significant opportunities to mitigate climate change over the next decade. Stopping deforestation could reduce global greenhouse gas emissions by 15-20% annually, while also providing a host of other environmental and socioeconomic benefits.
In 2018, Oak Hill catalyzed an innovative effort to reduce global deforestation through a market-based solution. The firm became a founding supporter, along with the Packard and Rockefeller Foundations, of a mission-driven investment and advisory firm to support the development of a new fund that will deliver financial incentives to make protecting forests more valuable than destroying them. Co-created with Environmental Defense Fund (“EDF”), the Emergent Forest Finance Accelerator will significantly reduce forest degradation and the greenhouse gas emissions caused by deforestation.
Specifically, the nonprofit investment entity will:
- Grow a high quality supply of REDD+ credits through purchase agreements (“REDD+” stands for reducing emissions from deforestation and forest degradation in developing countries)
- Create market demand for REDD+ credits by selling options to pre-compliance buyers (airlines, oil and gas companies, etc)
- Demonstrate proof-of-concept and catalyze a multi-billion dollar REDD+ market that protects millions of acres of tropical forest through the use of both public and private capital
John Monsky and J. Crandall served on the Advisory Board of the organization to guide the overall strategy and leverage their relationships across the private equity sector to connect Emergent's team with legal and business expertise that can further our shared goals of forest protection.