Catona Climate's Innovative Agroforestry Investment in Uganda
Catona Climate Makes Strategic Investment in Agroforestry
Catalytic capital deployment will enable early-stage carbon project to scale, demonstrating Catona's ability to accelerate from deep diligence to investment execution.
Empowering Local Farmers Through Sustainable Practices
Global climate finance company Catona Climate has successfully invested in a promising forestry project focused on improving carbon removal while simultaneously providing sustainable income sources for local farmers. This key investment supports their project development partner, Kijani Forestry, which works closely with over 35,000 smallholder farmers. The financial infusion aims to expand their project, targeting the restoration of over 300,000 hectares of land and the removal of an estimated 17 million tonnes of carbon dioxide equivalent from the atmosphere.
Commitment to Diligence and Verification
Catona Climate's approach to climate finance emphasizes rigorous due diligence, showcasing their confidence in this pre-issuance project. With a solid base of financial backing, Kijani Forestry is poised to achieve verification from Verra for their project, which will help attract long-term investment from mission-aligned buyers interested in nature-based carbon credits. By reaching critical milestones, Catona intends to secure additional capital to scale their efforts further.
A Partnership Built on Confidence and Innovation
“This exciting new partnership is a testament to our financing model in action,” said Catona Climate Co-CEO Tate Mill. He emphasized that their thorough assessment, both remotely and on-site, established a promising outlook for this project deserving early-stage investment. Investors are already eager to engage with this high-quality endeavor, reflecting a keen interest in enterprise buyers within the market.
Kijani Forestry: A Leader in Sustainable Practices
Founded in 2019, Kijani Forestry has swiftly risen to become one of Africa's largest tree-planting organizations. They plant millions of trees annually, empowering smallholder farmers in Uganda to create sustainable woodlots on their private lands. This initiative not only generates income through carbon credits but also involves timber and fuelwood sales, while combating climate change.
Building a Foundation for Sustainable Development
Through partnerships with local stakeholders, Kijani Forestry has been laying the groundwork for sustainable development in Uganda by promoting improved land use practices and sustainable forest management systems. Historically, access to tree-planting was limited for smallholder farmers due to costs and understocked nurseries. Kijani's innovative approach dismantles these barriers by offering essential inputs like properly sourced seeds, potting bags, maintenance equipment, and ongoing training along with community support via a dedicated, on-site team.
Establishing Sustainable and Resilient Income Cycles
Kijani emphasizes planting fast-growing tree species that can regenerate naturally and accumulate biomass after being harvested for fuelwood. This enables farmers to sustainably manage their land and harvest charcoal every three years, creating a recurring income stream while addressing Uganda's pressing charcoal and firewood demands. This sustainable model alleviates pressure on native forests and facilitates broader ecological restoration.
Collaboration for Lasting Impact
“We’ve developed a powerful model through this project that empowers local farmers and communities,” stated Kijani co-founder Beau Milliken. Catona's transformative investment, along with contributions from offtakers, financiers, and other key stakeholders, will magnify their efforts and create a lasting impact across Uganda. This partnership aims not only for increased carbon sequestration but also for fostering economic stability, food security, and resilient landscapes that support both people and wildlife.
Protecting and Restoring Natural Ecosystems
Beyond simply capturing carbon, the project aims to restore degraded land primarily using indigenous trees alongside selected non-indigenous species. This approach effectively enhances soil fertility, prevents erosion, preserves biodiversity, and fortifies long-term environmental resilience. Large-scale tree planting contributes significantly to stabilizing microclimates, regulating water cycles, and reviving ecosystems that have suffered from previous deforestation.
Robust Evaluation and Integrity Assurance
Catona's partnership with Kijani is the result of a meticulous evaluation process focusing on every aspect of the project, including market fit and broader environmental impacts. Catona aims to ensure that all projects in its portfolio meet high standards of integrity.
Navigating Nature’s Funding Challenges
Catona Climate recognizes the urgent need for funding nature-based carbon-removal projects, which traditionally face barriers to scalability. “With nature-based solutions, a lengthy timeline often exists between investment and realizing carbon revenues, causing investor hesitation,” pointed out Co-CEO Rob Lee. However, Catona is committed to addressing these gaps by providing early funding and reducing risks, thereby facilitating quicker engagement from other stakeholders.
About Kijani Forestry
Kijani Forestry is a social enterprise with aspirations to be the world's foremost effective organization dedicated to tree planting and ecosystem regeneration. Their scalable nature-based solutions deliver significant benefits to numerous smallholder farmers while promising attractive financial returns through high-quality, data-backed carbon credits.
About Catona Climate
Catona Climate focuses on delivering exceptional carbon solutions globally, helping businesses turn climate pledges into actionable steps through high-impact nature-based projects. Committed to combating the climate crisis, Catona Climate drives funds towards environmental initiatives, facilitating a just transition to a net-zero future.
Frequently Asked Questions
What is Catona Climate's investment focus?
Catona Climate primarily invests in nature-based carbon removal projects that empower local communities and promote sustainability.
What role does Kijani Forestry play?
Kijani Forestry collaborates with smallholder farmers in Uganda, enabling them to establish sustainable woodlots and generate income through carbon credits and timber sales.
How does this investment impact local communities?
The investment allows local farmers to have a sustainable income, enhances food security, and supports ecological restoration, benefiting both people and wildlife.
What are the environmental benefits of tree planting?
Tree planting improves soil fertility, enhances biodiversity, stabilizes microclimates, and helps regulate water cycles, contributing to long-term resilience against climate change.
Why is financing crucial for nature-based solutions?
Nature-based solutions often experience funding gaps that delay project launch. Catona Climate addresses this by offering early-stage investments to stimulate these essential initiatives.
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