Smart Model for Regreening
A sustainable world can support the environment, people, and economics. It is time to align these needs instead of pitting them against each other. This integrated vision is the foundation of the Spades’ approach to regreening. It requires all three dimensions to tap the Power of Trees™.
The world urgently needs reforesting. There is sufficient land, implementation capacity, and money. The challenge for others has been uniting them together to build the three-legged stool of regreening. Spades is different.
Spades is more than a carbon project developer. We are a rural development and reforestation projects integrator. Spades seeks to solve the problems that plague regreening to unlock better deals with scale.
It is expensive and disenfranchises local people to acquire land for reforestation. Trees can be regrown with landowner cooperation, increasing opportunity for all by sharing returns and eliminating the need to purchase land. This trend is expanding in the timber and sustainable wood stock industry. Stakeholders include landowners, their communities, and governments. Contracts are required for access to land, protection of trees, and any work or finance. Contracting may be led by a local government, which would be the group advisor to the SPV.
Depending upon the project design, contractors with differing service sets may be needed. Local businesses will be preferred, especially to sustain a long-term presence and serve markets created by the reforestation. Most will be subcontractors to one or two lead organizations, which will be the group link and advisor to the SPV.
Payment for services will generally be performance-based, usually per-tree. Cash advances may be available for establishing or increasing presence locally. Progress payments are made for ‘visible inventory’, such as seeds, seedlings, and plantings at each stage. Organizations should receive sufficient profit or cash flow to sustain scale for massive reforestation.
There will be contracts between leads and subs representing roles, responsibilities, and terms. Most workers will be sourced locally and be paid a premium above local wages for similar work. They will be provided benefits as required by local law, including healthcare insurance for temporary or year-round employment, depending upon the seasonality of planting. There will be suitable contracts between workers and employers.
Funds may be obtained from several sources, including investors, donors, institutions, banks, governments, etc. They will lead control of the SPV via any mechanism that they prefer to structure. Financiers will have agreements with the SPV, which will likely have performance requirements and limitations.
Carbon underpins the regreening investment, but trees deliver expanded opportunity. Carbon plus tree-derived assets like wood stock and food unlock balanced financial returns. Enlarged return opportunity delivers critical investment expansion. Trees survive and biodiversity expands with integrated outcomes for the environment, people, and economies.
Every project is different in terms of assets created, participants, and risks. All stakeholders, including investors, asset contributors, and supply chains expect reliable and meaningful returns. The significant assets created by trees allow for all participants to benefit.