SDG Impact Finance Initiative
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Fund for Nature

Thematic Focus: Financing nature-based solutions to expand supply of high-integrity carbon credits in Africa

CrossBoundary

Innovation window · Feasibility

Profile

Type
Feasibility
Funding
CHF 200,000
Sector
Conservation, Reforestation & Afforestation
Target geography
Sub-Saharan Africa

Target SDGs

  • SDG 8
  • SDG 13

Geographical focus

  • Kenya
  • Sierra Leone
  • Ghana
  • Mozambique
  • Zambia

About the solution

Impact Goal: Bridge the carbon finance gap by scaling high-quality NbS projects and strengthening voluntary markets Description: CrossBoundary aims to catalyse private sector investment in underserved markets through its Carbon Fund for Nature-Based Solutions (NbS) in Africa. This initiative seeks to bridge the significant gap between the demand for high-integrity carbon credits by corporations with net zero commitments and the currently low supply of such credits. By focusing on nature-based carbon removal and avoided emissions projects, CrossBoundary’s fund is poised to offer a critical financing solution for projects that would otherwise depend on grant or donor funding or the sale of a significant portion of their carbon credits upfront at lower prices. The fund targets a substantial increase in the supply of high-quality carbon credits, thereby enhancing the liquidity, integrity, and scale of the voluntary carbon market.

CrossBoundary’s Carbon Fund for Nature-Based Solutions proposes to fill the financing gap by providing project-level debt, a financing option currently absent in the market. This enables project developers to secure better prices for their carbon credits by offering investors a portfolio of mid-sized projects through an open-sourced Simple Agreement for Future Offtake (SAFO).