Frequently asked questions

Investment opportunities

What types of investment opportunities does the First Mover Fund offer?

The First Mover Fund offers a range of investment opportunities focused on early-stage land restoration and environmental projects, particularly those that generate high-demand agricultural commodities in addition to environmental commodities like carbon credits. Investors can then capitalize on the rising demand and prices of carbon credits through the First Mover Fund, which secures these credits at discounted rates from project developers.

How does the company assess the potential returns on its investments?

The company assesses potential returns on its investments by leveraging the expertise of its fund managers who specialize in identifying promising environmental projects. Our team spots early opportunities others simply can’t yet see, and built a fund so that investors can participate early in a market rewarding land restoration.

They evaluate the projected revenue from commodities generated by such projects like carbon credit sales, considering factors such as the project's scale, duration, and the prevailing carbon credit market conditions. Detailed financial modeling and market analysis guide investment decisions.

What strategies does the company employ to manage investment risks?

The First Mover Fund employs a comprehensive risk mitigation strategy to ensure the long-term viability and credibility of its nature-based carbon project investments. The fund prioritizes projects with robust project design and monitoring, adhering to internationally recognized standards such as those set by Verra, Gold Standard, or the Climate, Community & Biodiversity Standards (CCBS). Rigorous monitoring and verification processes, including remote sensing and field measurements, are done to accurately quantify emissions reductions or removals.

The First Mover Fund mitigates localized risks by diversifying its portfolio across various regions and ecosystems, such as forests, wetlands, and grasslands. This strategy protects against natural disasters, disease outbreaks, and political instability. Engaging local communities and Indigenous people fosters support and reduces conflict risks while securing land tenure and carbon rights safeguards investments from ownership disputes and legal challenges.

The First Mover Fund further mitigates its risks by implementing risk buffers or pooled insurance mechanisms to protect against potential reversals or losses of carbon stocks due to unforeseen events like wildfires or illegal deforestation. 

Strong governance frameworks, transparent decision-making processes, and effective management structures within the First Mover Fund help ensure long-term viability and reduce the risks associated with mismanagement or corruption.

By implementing this multi-layered risk mitigation strategy, the First Mover Fund enhances the attractiveness, longevity, and overall risk profile of its nature-based carbon projects, fostering confidence among you—the investor—and stakeholders while driving positive climate action.

What vetting process does the company follow?

The management team of the First Mover Fund meticulously evaluates and vets each carbon credit producer and their associated projects to ensure alignment with the company's core standards before making any investment decisions and ultimately placing the investment into the First Mover Fund portfolio. This rigorous due diligence process involves:

  1. Initial screening: Assessing project types, locations, and methodologies for alignment with the First Mover Fund's focus on nature-based solutions.
  2. Documentation review: Analyzing project design documents, validation reports, and monitoring plans for completeness and adherence to recognized standards.
  3. Field visits: Conducting on-site inspections to verify project implementation, community engagement, and environmental impacts.
  4. Stakeholder interviews: Engaging with local communities, project developers, and relevant experts to gather diverse perspectives.
  5. Financial analysis: Evaluating project financials, carbon credit pricing models, and long-term sustainability.
  6. Risk assessment: Identifying and analyzing potential environmental, social, and governance risks associated with each project.
  7. Third-party verification: Engaging independent auditors to validate project claims and methodologies.
  8. Additionality assessment: Ensuring projects genuinely contribute to carbon reduction beyond business-as-usual scenarios.
  9. Monitoring and reporting protocols: Reviewing systems for accurate measurement and reporting of carbon sequestration.
  10. Legal and regulatory compliance: Verifying adherence to local, national, and international regulations governing carbon credit projects.

This comprehensive approach enables the First Mover Fund to select high-quality, impactful nature-based carbon credit projects that meet its stringent investment criteria, contribute to its meaningful climate and land restoration initiatives, and ensure a profitable outcome for all stakeholders and investors.
Who would be a typical investor in the First Mover Fund?
  • High-net-worth individuals who are accredited investors
  • Family offices
  • Investment professionals
  • Investment entities with accredited investors
  • Institutional investors
  • Corporate investors
  • Financial institutions
  • Sovereign wealth funds

Carbon credits and markets

What are carbon credits?

Carbon credits, also known as carbon units or carbon offsets, are certificates, each representing 1 tonne of CO2 avoided or removed from the atmosphere through carbon and projects compared to baseline emissions. There are many different carbon projects, ranging from nature-based solutions like reforestation and land restoration to renewable energy initiatives.

These projects are then verified for their impact, and their emissions reductions or removals are converted into carbon credits and listed on recognized registries.

The credits are then sold on the market to organizations worldwide that wish to address their carbon footprint or to investors who want to trade with the credits. Ultimately, carbon credits are purchased by businesses to compensate for their emissions and are then retired by the registry. Carbon credits from high-quality projects with co-benefits, like nature-based solutions, are often more desirable by purchasers and have higher-valued credits due to their benefits.

What drives the demand for carbon credits?

The demand for carbon credits is increasingly driven by new market shifts and regulations. Corporations are pressured to meet ambitious emission reduction targets and sustainability goals, often set through initiatives like the Science Based Targets initiative (SBTi). Purchasing carbon credits allows them to compensate for emissions that cannot be eliminated, showcasing their commitment to environmental responsibility and satisfying stakeholder expectations.

Investor and consumer pressure, alongside regulatory compliance requirements like the new Corporate Sustainability Reporting Directive (CSRD) and the Carbon Offsetting and Reduction Scheme (CORSIA), further fuels the corporate demand for carbon credits. The adoption of rigorous standards and third-party audits further enhance the credibility and appeal of carbon credits.

Governments also drive demand for carbon credits through commitments under the Paris Agreement and Nationally Determined Contributions (NDCs). Regions like the EU and California have established emissions trading systems (ETS), creating structured demand.

As the urgency to address climate change intensifies and more ambitious emissions reduction targets are set, the demand for high-quality carbon credits is expected to rise, driven by corporate sustainability efforts, government climate policies, and the recognition of the benefits of carbon credit projects, particularly those focused on nature-based solutions that support Sustainable Development Goals (SDGs).

What are the reasons to invest in carbon credits?
  1. Market growth: The voluntary carbon credit market is expected to grow significantly, with projections suggesting it could reach up to $50 billion by 2030, compared to $4.7 million in 2025, according to Grand View Research.

  2. Regulatory support: Increasing regulatory measures globally aim to curb carbon emissions, compelling companies to compensate for their carbon footprint. For example, the European Union’s Fit for 55 package aims to reduce net greenhouse gas emissions by at least 55% by 2030, potentially increasing demand for carbon credits.

  3. High potential returns: As regulations tighten and the demand for carbon credits increases, their value is likely to rise. Early investors could see significant appreciation in value, mirroring trends observed in early environmental markets and other popular commodities.

  4. Diversification: Adding carbon credits to an investment portfolio can reduce risk through diversification. Carbon credits have shown a low correlation with traditional asset classes like stocks and bonds, providing stability even in volatile market conditions.

  5. Social and environmental impact: Investing in carbon credits contributes to funding projects that reduce emissions or remove carbon from the atmosphere, such as reforestation or renewable energy projects. This not only helps combat climate change but also supports local communities and biodiversity.

  6. Land productivity: Carbon credit projects transform underutilized and degraded land into productive ecosystems by financing regenerative agriculture and soil restoration. These initiatives help farmers improve yields, diversify income through sustainable land management, and gain long-term resilience against climate impacts.

  7. Incentive mechanisms: Certain jurisdictions offer tax incentives or credits for companies that invest in carbon offsets, reducing the overall cost of investment while fulfilling regulatory requirements.

     

How does the company participate in carbon credit markets?

The company participates in carbon credit markets by investing in early-stage environmental and land restoration projects that generate carbon credits through activities like reforestation and ecological restoration. By securing a portion of these credits at discounted prices, the company can later sell or trade them on carbon credit markets for potential financial returns.

What factors influence the value of carbon credits that the company invests in?

The value of carbon credits that the company invests in is influenced by several factors. Market demand for carbon credits, driven by regulatory policies and corporate sustainability commitments, plays a significant role. Additionally, the quality and scale of the environmental projects generating the credits, along with their verification and certification processes, affect credit values.

How does the company ensure the credibility and legitimacy of the carbon credits it trades?

The company ensures the credibility and legitimacy of the carbon credits it trades through rigorous verification and certification processes. It works with reputable third-party organizations to verify that the environmental projects meet established standards and criteria. This verification process adds transparency and credibility to the carbon credits, enhancing their market value and investor confidence in trading activities.

Environmental impact

What are the benefits of nature-based solutions?

Nature-based solutions can offer a multitude of co-benefits in addition to carbon sequestration, making them particularly impactful and desirable. Benefits of nature-based solutions include:

1. Carbon sequestration: Healthy ecosystems act as natural carbon sinks, removing carbon dioxide from the atmosphere and storing it in vegetation, soil, and other organic matter. Nature-based carbon solutions protect, restore, or sustainably manage these ecosystems.

2. Land restoration and farmer support: Nature-based solutions make underused land productive again by restoring soil health, improving water retention, and reintroducing native vegetation. These projects create long-term value for farmers by increasing crop yields, diversifying income through sustainable practices, and building resilience against droughts and other climate impacts—all while regenerating the land’s natural ecosystems.

3. Biodiversity conservation: Nature-based carbon solutions often involve the preservation or restoration of vital natural habitats, which helps to protect and revitalise biodiversity and maintain ecosystem services essential for human well-being.

4. Sustainable community development: Many nature-based carbon solutions are located in developing countries, providing opportunities for sustainable economic development, job creation, and improved livelihoods for local rural communities.

5. Other co-benefits: In addition to climate mitigation, nature-based solutions can offer a range of co-benefits, such as improved water quality, soil conservation, biodiversity enhancement, resilience to natural disasters, and local community upliftment.

What specific environmental impact does the company aim to achieve through its investments?

The company aims to achieve a positive environmental impact through investments in projects focused on reforestation, ecological restoration, and land restoration efforts. By supporting these nature-based solutions, the company contributes to carbon sequestration, farmer support, biodiversity conservation, and the restoration of ecosystems.

How does the company measure and monitor the environmental outcomes of its funded projects?

The company employs various tools and methods to measure and monitor the environmental outcomes of its funded projects. This includes tracking metrics such as carbon sequestration rates, biodiversity indicators, and the overall health of restored ecosystems. Regular assessments and reporting ensure transparency and accountability in achieving environmental objectives.

What long-term goals does the company have in terms of promoting sustainability and ecological restoration?

In terms of promoting sustainability and land restoration, the company has long-term goals of expanding its portfolio of impactful environmental projects. This includes scaling up investments in large-scale reforestation initiatives, partnering with local communities and farmers to implement sustainable land-use practices, and advocating for policy measures that support nature-based solutions and carbon sequestration. By advancing these goals, the company aims to make meaningful contributions to global efforts toward environmental sustainability and climate resilience.