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PAY FOR PERFORMANCE TOOLKIT

Seed Funding

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.

Distinguishing Characteristics

  • Conservation buyer acts as an investor, providing upfront capital for producer to implement project
  • Producer repays initial investment upon sale of certified credits
seed funding diagram

Refer to the Actors page for descriptions of each component.