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Investing in Nature and Ecosystem Restoration

Nov 13, 2024

Lecture Notes on Cultivo and Investment in Nature

Introduction

  • Speaker: Thanked organizers and Marco for the opportunity.
  • Topic: Introduction and explanation of Cultivo's mission and methods.

Cultivo's Mission

  • Goal: Accelerate investment into nature at scale.
  • Target: Regenerate 1% of the world's land to healthy ecosystems (size of Mongolia or two Texas states).

Approach and Methodology

  • Technology Use:
    • Data and tech used to identify high-quality global projects.
    • Operates like a search engine for natural capital.
  • Proprietary Algorithms:
    • Assess degradation, land cover/vegetation changes.
    • Forecast natural capital returns (soil moisture, carbon capture, biodiversity).
  • Investment Packaging:
    • Projects are made into investment products showing financial, natural, and social returns.

Implementation and Monitoring

  • Partners: NGOs and project developers work with local communities.
  • Transparency: Use of experts, sensors, satellites to audit projects.
  • Focus: Unlock investment into nature at scale by addressing 'how'.

Customer Engagement

  • Portfolio Types:
    1. Unlock natural capital in existing lands.
    2. Create natural capital portfolios for institutions without land assets.
    3. Monetize credits from natural capital portfolios.

Natural Capital Valuation

  • Starting Point: Land asset, building up to various land uses (e.g., wind farms, regenerative agriculture).
  • Key Gains: Biodiversity, water, carbon.
  • Impact:
    • New revenue streams.
    • Increased land value through climate resilience and EBITDA improvement.

Case Study and Project Example

  • Grassland Portfolio in North Mexico:
    • Affecting SDGs, permanence, carbon storage, biodiversity, water, social aspects.
    • Technology ensures social/environmental safeguards.

Institutional and Global Partnerships

  • Key Partners: IFC, Aspiration, AIDA, World Bank Climate Warehouse, etc.
  • Transparency and Trust: Carbon Opportunities Fund with IFC and others.

Team and Global Presence

  • Team Size: 24 people across US, Mexico, UK, Spain.
  • Headquarters: California, public benefit corporation.
  • Board Members: Influential leaders like Mark Carney.

Grasslands Focus

  • Importance: Often overlooked in nature-based solutions.
  • Scale: Covers more than half of the planet (3 billion hectares).
  • Outcome: Low-risk carbon removal credits.

Ecosystem and Execution Strategy

  • Docking Station Concept: Integrate investors, tech, developers, registries, local partners.
  • Key Elements: Speed, efficiency, transparency with tech and experts.

Growth and Scaling

  • Market Position: Potential unicorn platform.
  • Foundations: Building trust with ecosystem partners; capital moves at the speed of trust.
  • Growth Indicators: Increasing customer pipeline, revenues, repeat business.
  • Partnerships: Collaborations with NGOs and landlords.
  • Technology and Financing: Proving technology platform, closing financing round.
  • Call to Action: Invitation for interest and questions.

Conclusion

  • Emphasis: Need for speed in scaling up efforts for the planet's needs.
  • Acknowledgment: Thanks for audience's time and attention.