Today I want to share with you a creative solution to something many complain about, but frequently don't offer a solution: Deforestation.
So often these days you hear statistics of how rapidly deforestation is happening, wringing of hands over people's shortsightedness, cutting them down so that they can raise cattle, soy, or some other cash crop. But something's being forgotten here: the people.
Like smokers who know it's damaging, but in their lives, don't see another option, these people
often don't have another viable way to make a living, and feed their families. Without something as profitable, what reason do they have to take a long term view of things? They're not stupid, they know they're damaging their environment, but to them, what other choice do they have?
Planting Empowerment is fast growing another option for them, starting in Panama: They partner with people in the area, making deals with them to replant the area with native tree species, plus other plants that would make up a forest, like there was before. In the case of the indiginous community of Arimae, for every hectare of land they replant, another 5 will be preserved. This agreement is a first between an indigenous community and a private forestry business.
Then what?
Planting Empowerment makes lease payments to these people (note that they don't outright buy, leaving control in the hands of locals) which are equivalent or better than what they'd make had they continued, say, cattle ranching. Funds come from individual and corporate investors here in the US, who will get around a 10% IRR on it when high value trees like Mahogany, Rosewood, and Cedar are harvested. That happens year 8, 12, and 15, selectively. FSC certification is being sought.
Along with larger investors, Planting Empowerment also has what they call a Forest Savings Bond, sold in $50-$100 increments, with an expected 7.3% APY, along with the ecological benefits of carbon sequestration, protection/reinvigoration of rainforest, and with it, the return of habitat for endangered animals. It is also possible for people to visit their investment. In a way, this is like Heifer International, but with trees.
What do the locals get from this harvest? They split profits equally with Planting Empowerment, a portion of that being used for creating aqueducts, creating/enhancing educational opportunities, and other such initiatives.
Planting Empowerment consider themselves an open source business. That is, they want others to copy what they do, for the idea to spread and the impact to be maximized. Part of how they do things is to employ as much local labor as possible, rather than being imperial enablers of continued dependence.
This short video below does a terrific job explaining the entirety of why Planting Empowerment came to be and what's happened as a result of their efforts. Inspiring indeed.
Readers: What other examples of entrepreneurial solutions to man made environental damage do you see out there? Having learned about Planting Empowerment, do you have any feedback/suggestions on their model? Comment below.
