LDN Fund and LDN TAF Case Study
Country:
Colombia
Sector:
Biodiversity credits
Business model
Terrasos is a pioneer in biodiversity compensation projects for private and public organizations in Colombia. Building on this experience, Terrasos designed and implemented the first Habitat Bank in Colombia. Habitat Banks are areas of land where actions for the preservation and restoration of ecosystems and sustainable land use are implemented to offset negative impacts on biodiversity. This regulated mechanism is oriented to generate a payment for environmental results, which makes it possible to achieve increases in productivity, efficiency, and quality of environmental compensations. Habitat Banks propose a solution to current shortcomings in the Colombian offset market offerings by creating 30-year projects with autonomous operations.
Investment
Purpose: LDN Fund’s investment of USD 6.5 million will support the expansion of Terrasos’ Habitat Banks model in Colombia.
Duration: 9 years.
Technical assistance
- Engaging expert support to strengthen Terrasos’ biodiversity monitoring approach and test an innovative technique.
- Develop an approach to quantitatively measure impact additionality of Habitat Banks in relation to their surrounding environment.
- Develop a comprehensive risk management system for the operations of existing and new Habitat Banks managed by Terrasos.
