From Carbon to Biodiversity: Innovators Share their Vision for More Credible Nature Financing
MEDIA RELEASE
For publication December 2, 2023
Singapore
How can we reconcile with the challenges of a contentious carbon market, and the dire financing gap for nature? Five startups share their solutions at COP28.
1 December: The Biodiversity Accelerator+ Demo Day, held on the December 1st at COP28, highlighted five innovative, data-driven companies working to direct more funding towards high integrity nature-positive outcomes. The Demo Day was a culmination of the companies’ participation in a three-month capacity-building programme, hosted by impact investor Silverstrand Capital.
These solutions drive towards the US$200 billion annual nature financing targets set by 188 countries via the Kunming-Montreal Global Biodiversity Framework, and are unified by their role in creating greater transparency and local inclusion in nature financing across a wide range of industries.
Despite the devastating impact of private industry on biodiversity, only 17% of annual funding for nature currently comes from the private sector today. Carbon markets provide one mechanism to allocate more commercial financing towards nature, but they have recently taken a number of hits due to a spate of controversies, such as that of the Kariba Project in Zimbabwe.
“It is critical that we find diverse solutions that address the trust deficit in the market,” said Kelvin Chiu, founder of Silverstrand Capital. “Extinction rates are over 100 times higher than they would be without human activity. We are proud to be backing these organisations, which are enabling the decisive action needed to reverse the trend on biodiversity loss.”
The cohort represented at the Demo Day span a wide range of sectors, including commodity supply chains, infrastructure, the financial sector and the carbon space.
Bioverse, for example, conducts spatial and economic analyses in the Brazilian Amazon on the value of Non-Timber Forests Products (NTFPs), which allow suppliers to source reliably from sustainable supply chains that prevent deforestation, by providing community partners with alternative livelihoods. Singapore-based Nika.Eco, India-based Blue Sky Analytics, and Australia-based Xylo Systems and Guardians of Earth also presented their solutions.
The judges on the panel included Dhun Davar of UBS Optimus Foundation, Professor Koh Lian Pin, Chief Sustainability Scientist at the National University of Singapore, and Patti Chu, Head of Impact Investments at Silverstrand Capital.
At the end of the session, Silverstrand Capital announced investments of $250K each into cohort companies Nika.Eco and Xylo Systems. Nika.Eco uses AI-powered tools to rapidly identify red flags in nature-based carbon projects, including issues of additionality, permanence, and leakage, some of the key principles of integrity for the market. Xylo Systems provides property developers with quick access to pre-processed biodiversity analytics, backed by over 100 million datapoints, so that they can select development sites more sensitively.
“The past few months of thoughtful coaching has helped us address hard questions about the fundamentals of our business and industry. We’re confident in our ability to grow our impact, and are heartened that the judges felt similarly. We are very grateful for the immense support of the Silverstrand team.” shared Johann Wah, CEO and co-founder of Nika.Eco.
Blue Sky Analytics, which aims to be the Bloomberg for Climate and Nature-related data, won the People’s Choice Award.
The UBS Optimus Foundation will also be awarding a cash prize to Biodiversity Accelerator+ cohort company EarthAcre for its innovative work which focuses on measuring and monetizing biodiversity outcomes.
“UBS Optimus Foundation is convinced that the best way to mobilize and scale funding for nature-based solutions is by measuring, tracking and demonstrating the value nature can create and build a business case for such initiatives,” said Dhun Davar, Head of Social Finance, UBS Optimus Foundation. “It is encouraging to see how participants of the Biodiversity Accelerator+ cohort, including EarthAcre, have found innovative solutions to showcase the value of natural capital and monetize proven outcomes in a scalable way.”
“Navigating through intricate regulatory, financial, and scientific challenges is essential when operating in the biodiversity space,” added Hiba Larsson, Principal at NatureFinance, which will be providing additional post-progbramme support to the cohort. “We are excited to announce our partnership with Silverstrand, aiming to offer support to their catalytic investments in addressing these multifaceted aspects, harnessing NatureFinance's capabilities and ability to convene experts and knowledge partners.”
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About Silverstrand Capital
Silverstrand Capital is a Singapore-based investment firm with an impact investment mandate to catalyse biodiversity-positive impact. Its mission is to accelerate the widescale restoration and conservation of ecological health and biodiversity on land and sea. Its global portfolio of startups and funds spans a wide range of sectors, including regenerative agriculture, sustainable aquaculture, and nature-based solutions.
About the Biodiversity Accelerator+
The Biodiversity Accelerator+ is a three-month, hybrid programme designed to scale businesses creating a biodiversity-positive impact. It is a philanthropic initiative of Silverstrand Capital.
About UBS Optimus Foundation
UBS Optimus Foundation is an independent grant-making foundation that offers UBS clients a platform to use their wealth to drive positive social and environmental change. The Foundation selects programs that improve children’s health, education and protection, ones that have the potential to be transformative, scalable and sustainable as well as programs tackling environmental and climate issues.
Contact
Rachel Ashton Lim
Impact Investment Associate, Silverstrand Capital
rachel.lim@silverstrand.capital
