The M40 Initiative - Frequently Asked Questions
Why have you chosen these 40 locations?
These 40 locations cover over two-thirds of the mangrove ecosystem. As administrative units, they are one level below the nation state, such as a state or province. Within these locations, rapidly growing coastal cities represent an opportunity for projects to drive urban coastal resilience through mangroves in cost-effective ways financing for resilient infrastructure is lacking. Other projects may involve blue carbon and livelihood opportunities in peri-urban or more rural areas. The selection of 40 locations is intended to increase the diversity in geographic coverage of locations of the greatest mangroves and carbon stocks. For example, 5 out of the top 10 mangrove carbon holding locations (and 12 out of the 40) are located in Indonesia.
Why mangroves?
Mangrove ecosystems are an important nature-based solution. They are a carbon powerhouse, storing carbon 4-5 times faster than land-based forests. They protect coastlines against extreme weather such as storms and floods, saving an average of $65 bn per year in avoided losses. They also support marine biodiversity, including many species of commercial fish, and in turn support community livelihoods. Despite their value, mangroves have the fastest deforestation rate of all forests, and given their carbon content, this leads to significant greenhouse gas emissions. Overall, 50% of global mangroves have already been lost, and most conservation and restoration projects are too small and fragmented to make a difference.
Why is Earth Security developing the M40?
Despite the value of mangroves as a nature-based solution, investing in mangroves as an asset has remained elusive. In 2020, Earth Security set out to explore the potential of investing in mangroves on a global scale, mobilising banks, companies and DFIs on an understanding of the potential to drive innovation at scale (see the 2020 blueprint for M40 here).
At the heart of that vision were the concept of a ‘mangrove bond’ for climate resilience and the Mangrove 40 (M40) – a series of locations around the tropical belt of the planet where most of the remaining mangroves are left – as a series of locations where mangrove financing for resilience could be replicated. As a result of this work, throughout 2021, Earth Security, a strategic organisation at the forefront of innovation aligning global finance with nature’s capital, began piloting the ‘mangrove bond’ in Queensland, Australia, one of the M40 locations, and since 2019 has been mobilising the re/insurance sector in the Philippines (another M40 location) to catalyse insurance action mangroves as an asset in coastal resilience.
In 2022, Earth Security and UBS Optimus Foundation took a step further to bring the vision of the M40 to life as a programme to take innovative developments to bring private sector investment and catalytic capital for mangroves beyond individual projects to a global scale.
What will the M40 Initiative do?
The first phase of the M40 will work on four main activity streams over the next three years (2022-2025):
- Design an investment framework for projects that enhances the investment value of mangroves beyond blue carbon, and can lead to an enhanced valuation of carbon offsets, quantifying other key benefits such as coastal resilience, biodiversity and livelihoods.
- Collaborate with NGOs and other stakeholders to identify projects across M40 locations where private sector funding, and public sources for capacity building, can increase the access to market of existing programmes and encourage new ones.
- Advance a country financing pilot in Indonesia, catalysing opportunities to connect different forms of private sector finance to DFIs, governments, NGOs and foundations, to mobilise capital for mangroves as a nature-based solution.
- Catalyse the development of an M40 financing mechanism in collaboration with fund managers, which provides a conduit for private and public capital to reach projects and programmes around the world.
Can I apply for funding with M40?
While we are not a funder and projects cannot apply directly to funding with us, we encourage projects to get in touch so that they can be included in a global investment pipeline that will provide access to investors. Further information on which projects will qualify for this will be further provided. The M40 Initiative is building the brokerage system to connect global private sector companies and investors, with mangrove conservation and restoration projects around the world, supported by catalytic capital from DFIs, donors and foundations to build their capacity.
Will the M40 implement its own restoration projects?
No, the M40 is not a project developer and will not directly implement projects. Instead it focuses on creating new financing systems that can increase the participation of private and public investors in a global pipeline to reach a greater scale at the level and speed that is required. The M40 will identify projects on the ground across 40 key locations, engage stakeholders across government, business and civil society sectors to incentivise project development, and develop the facilitation mechanism to match projects and investors to scale finance to mangrove assets on a global scale.
What will the impact of the M40 be?
The M40 seeks to create impact on multiple levels:
- Deliver a private sector investment model for mangroves as a nature-based solution.
- Mobilise private/public investors towards projects across the entire global ecosystem.
- Quantify the social and environmental value of mangroves in addition to blue carbon, to expand the investment value proposition and influence carbon markets.
- Increase access of local mangrove projects to companies and investors.
- Catalyse innovative country finance in Indonesia through a country pilot.
- Design and launch an M40 financing mechanism as a global conduit for investment.
How can I partner with Earth Security and The M40 Initiative?
We are developing strategic relationships with leading NGOs, global mangrove initiatives and other organisation’s whose purpose is aligned to the initiative and are interested in expanding market access for manrgove-related projects. We are a member of the High Level Climate Champions effort to launch a global effort to finance mangroves restoration and protection in advance of COP27 and are regularly consulted for our expertise on innovative finance for mangroves. Please get in touch.
Can interested donors support the M40?
Yes. The program is philanthropically funded and is currently looking for additional donors. The total value of the program is €3m over 3 years. If you are interested in becoming a donor, we would love to hear from you.
Why is private sector investment needed to protect and restore mangroves?
The role that these ecosystems play in climate mitigation and adaptation has been underappreciated, and mangroves have been subsequently cleared to make room for development, urban growth, aquaculture, and local livelihoods, without an appreciation of what is being lost and the vulnerabilities this has created. There are practical considerations to conserving these unique ecosystems which can make such activities costly. Sourcing funding for mangrove conservation and restoration can be difficult especially at the global scale we need. Mobilising the participation of the private sector, in addition to public and philanthropic funding is necessary both to increase the available resources for projects as well as to reaffirm the role that healthy coastal ecosystems play in a range of other coastal investments and the future resilience of these regions.
The M40 Initiative - Frequently Asked Questions
Why have you chosen these 40 locations?
These 40 locations cover over two-thirds of the mangrove ecosystem. As administrative units, they are one level below the nation state, such as a state or province. Within these locations, rapidly growing coastal cities represent an opportunity for projects to drive urban coastal resilience through mangroves in cost-effective ways financing for resilient infrastructure is lacking. Other projects may involve blue carbon and livelihood opportunities in peri-urban or more rural areas. The selection of 40 locations is intended to increase the diversity in geographic coverage of locations of the greatest mangroves and carbon stocks. For example, 5 out of the top 10 mangrove carbon holding locations (and 12 out of the 40) are located in Indonesia.
Why mangroves?
Mangrove ecosystems are an important nature-based solution. They are a carbon powerhouse, storing carbon 4-5 times faster than land-based forests. They protect coastlines against extreme weather such as storms and floods, saving an average of $65 bn per year in avoided losses. They also support marine biodiversity, including many species of commercial fish, and in turn support community livelihoods. Despite their value, mangroves have the fastest deforestation rate of all forests, and given their carbon content, this leads to significant greenhouse gas emissions. Overall, 50% of global mangroves have already been lost, and most conservation and restoration projects are too small and fragmented to make a difference.
Why is Earth Security developing the M40?
Despite the value of mangroves as a nature-based solution, investing in mangroves as an asset has remained elusive. In 2020, Earth Security set out to explore the potential of investing in mangroves on a global scale, mobilising banks, companies and DFIs on an understanding of the potential to drive innovation at scale (see the 2020 blueprint for M40 here).
At the heart of that vision were the concept of a ‘mangrove bond’ for climate resilience and the Mangrove 40 (M40) – a series of locations around the tropical belt of the planet where most of the remaining mangroves are left – as a series of locations where mangrove financing for resilience could be replicated. As a result of this work, throughout 2021, Earth Security, a strategic organisation at the forefront of innovation aligning global finance with nature’s capital, began piloting the ‘mangrove bond’ in Queensland, Australia, one of the M40 locations, and since 2019 has been mobilising the re/insurance sector in the Philippines (another M40 location) to catalyse insurance action mangroves as an asset in coastal resilience.
In 2022, Earth Security and UBS Optimus Foundation took a step further to bring the vision of the M40 to life as a programme to take innovative developments to bring private sector investment and catalytic capital for mangroves beyond individual projects to a global scale.
What will the M40 Initiative do?
The first phase of the M40 will work on four main activity streams over the next three years (2022-2025):
- Design an investment framework for projects that enhances the investment value of mangroves beyond blue carbon, and can lead to an enhanced valuation of carbon offsets, quantifying other key benefits such as coastal resilience, biodiversity and livelihoods.
- Collaborate with NGOs and other stakeholders to identify projects across M40 locations where private sector funding, and public sources for capacity building, can increase the access to market of existing programmes and encourage new ones.
- Advance a country financing pilot in Indonesia, catalysing opportunities to connect different forms of private sector finance to DFIs, governments, NGOs and foundations, to mobilise capital for mangroves as a nature-based solution.
- Catalyse the development of an M40 financing mechanism in collaboration with fund managers, which provides a conduit for private and public capital to reach projects and programmes around the world.
Can I apply for funding with M40?
While we are not a funder and projects cannot apply directly to funding with us, we encourage projects to get in touch so that they can be included in a global investment pipeline that will provide access to investors. Further information on which projects will qualify for this will be further provided. The M40 Initiative is building the brokerage system to connect global private sector companies and investors, with mangrove conservation and restoration projects around the world, supported by catalytic capital from DFIs, donors and foundations to build their capacity.
Will the M40 implement its own restoration projects?
No, the M40 is not a project developer and will not directly implement projects. Instead it focuses on creating new financing systems that can increase the participation of private and public investors in a global pipeline to reach a greater scale at the level and speed that is required. The M40 will identify projects on the ground across 40 key locations, engage stakeholders across government, business and civil society sectors to incentivise project development, and develop the facilitation mechanism to match projects and investors to scale finance to mangrove assets on a global scale.
What will the impact of the M40 be?
The M40 seeks to create impact on multiple levels:
- Deliver a private sector investment model for mangroves as a nature-based solution.
- Mobilise private/public investors towards projects across the entire global ecosystem.
- Quantify the social and environmental value of mangroves in addition to blue carbon, to expand the investment value proposition and influence carbon markets.
- Increase access of local mangrove projects to companies and investors.
- Catalyse innovative country finance in Indonesia through a country pilot.
- Design and launch an M40 financing mechanism as a global conduit for investment.
How can I partner with Earth Security and The M40 Initiative?
We are developing strategic relationships with leading NGOs, global mangrove initiatives and other organisation’s whose purpose is aligned to the initiative and are interested in expanding market access for manrgove-related projects. We are a member of the High Level Climate Champions effort to launch a global effort to finance mangroves restoration and protection in advance of COP27 and are regularly consulted for our expertise on innovative finance for mangroves. Please get in touch.
Can interested donors support the M40?
Yes. The program is philanthropically funded and is currently looking for additional donors. The total value of the program is €3m over 3 years. If you are interested in becoming a donor, we would love to hear from you.
Why is private sector investment needed to protect and restore mangroves?
The role that these ecosystems play in climate mitigation and adaptation has been underappreciated, and mangroves have been subsequently cleared to make room for development, urban growth, aquaculture, and local livelihoods, without an appreciation of what is being lost and the vulnerabilities this has created. There are practical considerations to conserving these unique ecosystems which can make such activities costly. Sourcing funding for mangrove conservation and restoration can be difficult especially at the global scale we need. Mobilising the participation of the private sector, in addition to public and philanthropic funding is necessary both to increase the available resources for projects as well as to reaffirm the role that healthy coastal ecosystems play in a range of other coastal investments and the future resilience of these regions.