Unlocking billions for nature with Cultivo, Ep #102
Dec 17, 2024
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In this engaging discussion, Manuel Pinuela, the Founder and CEO of Cultivo, shares his vision for unlocking investment in nature-based climate solutions. He highlights the staggering $700 billion financing gap that hinders private sector involvement and explains how Cultivo leverages advanced technology to bridge this divide. Manuel dives into how sustainable practices like rotational grazing can revitalize ecosystems while promoting economic benefits. With recent funding successes, he emphasizes the potential for scaling up ecological investments to combat climate change effectively.
Cultivo leverages technology to transform nature restoration into an investment-grade opportunity, bridging a $700 billion financing gap in ecosystem recovery.
Engaging local communities is crucial in nature restoration initiatives, ensuring alignment between ecological goals and economic desires for sustainable impact.
Deep dives
The Urgency of Nature Restoration
Restoring nature is critical, as over half of the world's ecosystems are degraded. This presents a massive addressable market for financial institutions and corporations currently underinvesting in natural restoration solutions. Addressing questions such as how much financial backing is needed and the current state of the land are essential for landowners seeking to revitalize their properties. Using technology to enhance due diligence may unlock the opportunities necessary for wider-scale investment in nature-based solutions.
Cultivo's Innovative Approach
Cultivo employs advanced technology to streamline the process of restoring degraded ecosystems, focusing on data-driven decisions for investment opportunities. By integrating remote sensing and ground truth data, Cultivo provides vital insights into the ecological states of lands and outlines strategies for regeneration. Their aim is to position nature regeneration as an investment-grade opportunity, appealing to larger institutional capital. This approach seeks to address the historical inefficiencies that have hindered investment in nature restoration.
Diverse Revenue Streams from Regenerated Ecosystems
The financial viability of nature-based solutions extends beyond carbon credits, encompassing biodiversity, community livelihoods, and ecosystem resilience. Regenerated landscapes can lead to diverse income sources, such as eco-tourism, food production, and other ecosystem services that benefit local communities. For instance, previous forest management projects have created opportunities for local economies through enhanced practices, like mushroom foraging that caters to high-end markets. Therefore, a profitable and sustainable model can emerge from effectively managed ecosystems.
Collaborative Efforts for Long-Term Success
Engagement with local communities is essential for the success of restoration initiatives, emphasizing the importance of prior consultation and collaboration. Ensuring that land stewards are fully committed to regeneration efforts fosters sustainable practices and project longevity. Cultivo's focus on social context helps align economic desires with ecological goals, creating a holistic approach to land management. This community-centric model is vital for achieving substantial and lasting impacts in nature restoration efforts.
Let’s talk about nature – the forests, land, oceans, biodiversity, and ecosystem that make this planet liveable and, if you ask me, quite worth saving. Nature regulates our climate – and stewarding nature well could contribute 20-30% of our emissions reduction needs. It’d also support livelihoods around the world and help prevent the mass extinction of many of our planet’s species.
Nature-based solutions often sound simple – planting and protecting forests, farming in ways that improve soil health, restoring wetlands – but require sophisticated techniques to measure and track their impact. The lack of good nature monitoring systems has contributed to a $700 billion global financing gap and an inability of private sector investors to really lean into this opportunity. Currently, just 15% of investment in nature-based solutions comes from the private sector.
This is where a young company called Cultivo comes in. Cultivo uses technology to understand the investment opportunity for nature based solutions. Having just raised $14 million of venture capital, they’re ready to scale. I was thrilled to speak with Cultivo Founder and CEO Manuel Pinuela. We discussed Manuel’s background as a repeat entrepreneur, how he came to found Cultivo, the technology that sets them apart, the potential they see and much more. I learned a lot and became a quick fan of Cultivo’s work.
Hope you enjoy this episode. It’s our last of 2024, so I’m wishing you all happy holidays. I hope you all get to spend some time resting and recharging – perhaps including some time in nature – and gear up for the challenges ahead. Thanks for listening.
In today’s episode, we cover:
[00:58] Manuel Pinuela's background and how he got into climate
[06:25] Cultivo and the problem that they’re solving
[09:30] Defining "degraded land" and Cultivo's target customers
[12:55] Cultivo's technology and approach
[15:11] Examples of complex nature-based solutions Cultivo works on
[23:54] The climate impact and portfolio approach of Cultivo's work
[31:19] Cultivo's progress and recent $14 million funding round
[35:09] What the nature-based solutions market needs