In a seed funding strategy, a conservation buyer provides capital to finance project implementation costs. The environmental outcomes generated are intended to be sold to a mitigation buyer, giving producers the opportunity to profit after repaying the initial public investment.
Seed funding is effective in creating a supply of environmental outcomes in a mitigation market with unproven demand. This reduces risk and eases the transition for early industry involvement for both producers and mitigation buyers.
Conservation buyer acts as an investor, providing upfront capital for producer to implement project
Producer repays initial investment upon sale of certified credits
Refer to the Actors page for descriptions of each component.