INSTRUMENT ANALYSIS

The Landbanking Group (TLG) is introducing Nature Equity Assets (NEAs), a new asset class that uses real-time Measuring, Reporting, and Verification (MRV) technology to value the ecological uplift of High Integrity Forests (HIFs) and regenerative agriculture. The instrument employs a blended finance approach, providing discounted loans to land stewards—primarily Indigenous Peoples and Local Communities (IPLCs)—who repay the capital through commodity sales and outcome-based payments from corporate or government funders. Initial pilot projects are targeting the soy and cacao value chains in Brazil, with future expansions planned for Africa, Latin America, and Asia. Quantitative modeling suggests that regenerative agriculture is more profitable for land stewards than conventional methods, though standalone conservation projects currently require concessional grants to be viable.

• The Landbanking Group is creating a new asset class called Nature Equity Assets (NEAs) that assigns financial value to the uplift of biodiversity, carbon, soil, and water on specific polygons of land, allowing these assets to be held on corporate balance sheets.
• The instrument utilizes a blended finance structure consisting of senior (commercial), subordinate (concessional), and first-loss tranches to provide discounted loans to land stewards.
• Initial implementation is focused on Brazil, specifically targeting the soy and cacao value chains in the Amazon Biome to create buffer zones between agricultural expansion and High Integrity Forests.
• Quantitative analysis indicates that regenerative agriculture is more profitable for land stewards than conventional agriculture, with an illustrative internal rate of return (IRR) of 20-25% compared to 2% to -7% for conventional systems, and a payback period reduced from 14 to 7 years.
• While projects integrated with value chains are commercially viable, standalone conservation projects ('full ecosystem services') currently require concessional capital or price subsidies because current NEA pricing is insufficient to support them.
• The instrument specifically targets the financial inclusion of Indigenous Peoples and Local Communities (IPLCs), who act as land stewards and currently receive only 1% of climate finance flows.
• The Landler Platform provides the technical foundation for the instrument, using earth observation, remote sensing, and in-situ data (such as eDNA and bio-acoustics) to monitor natural capital stocks in real time.

APA

Climate Policy Initiative (2024). INSTRUMENT ANALYSIS. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/The-Landbanking-Group_Instrument-Analysis.pdf

Chicago

Climate Policy Initiative. INSTRUMENT ANALYSIS. 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/The-Landbanking-Group_Instrument-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INSTRUMENT ANALYSIS |date=September 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/The-Landbanking-Group_Instrument-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024instrument, author = {{Climate Policy Initiative}}, title = {{INSTRUMENT ANALYSIS}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/The-Landbanking-Group_Instrument-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }