The Natural Capital Lab (NCL) contributes to combating deforestation in Latin America and seeks to turn natural capital into a new investment asset.s.

This trust fund initiated by France is hosted by the Inter-American Development Bank, in the framework of the Alliance for tropical rainforests. It now focuses on key priorities: combating deforestation, encouraging the transition to responsible agriculture, preserving biodiversity and transboundary cooperation. 


The fund aims to 1) develop incubation and address the lack of infrastructure for natural capital entrepreneurs, 2) provide financial resources for mature projects and 3) draw on public-private financing mechanisms, de-risk investments and raise private capital.


The fund has already approved two concrete projects:

  • The Peru Bioeconomy Finance Structure, a $25 million programme in Peru, including a $3 million technical assistance facility and $2 million grant from the NCL. The objective is to fund projects led by SMEs in the bioeconomy sector, whose work contributes to combating deforestation. It consists in an investment fund, managed by COFIDE (the Peruvian Development Bank), and technical assistance. 
  • The ReGenerate Accelerator, a $4 million multi-country project, including a $2 million donation from the NCL. This is a support and guidance programme for startups and SMEs in Latin America, which aims to help them raise private funding with a view to scaling up their operations. The fund will managed by Kaeté Investimentos, a private fund manager. The project focuses on forests and biodiversity and targets Amazonian countries, in line with the objectives of another One Planet initiative, the Alliance for the Conservation of Rainforests.
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IDB’s Natural Capital Lab aims at  driving innovation for the IDB Group in the conservation, landscape, regenerative agriculture, biodiversity, and marine ecosystem finance spaces.  It seeks to bridge the gap between traditional environmental and financial actors from the public and private sectors to incubate, accelerate, and scale new solutions to pressing problems related to deforestation. 
 
The achievement of the SDGs will only happen if the diversity of actors involved in advancing an innovation agenda learn to partner with each other. Government, academia, private sector, entrepreneurs, and civil society cannot solve problems alone. The Natural Capital Lab prioritizes multi-stakeholder partnerships to provide evidence on how inclusive innovation facilitates concrete results. 
 

Website: www.iadb.org/en/environment/natural-capital-lab

Contact at the Inter-American Development Bank:  Watson Gregory GREGORYW@iadb.org and Bonilla Juan Pablo JBONILLA@iadb.org
Contact in France: camille.chabe@dgtresor.gouv.fr