Ardian, aDryada Launch Nature-Based Solutions Strategy
Ardian, a renowned global private investment firm, and aDryada, a French organisation dedicated to forest restoration and biodiversity conservation, are thrilled to announce the inception of Averrhoa Nature-Based Solutions.
This visionary initiative is exclusively committed to the execution of large-scale nature-based projects, with a resolute aim to foster a profound positive impact on climate sustainability, biodiversity preservation, and the well-being of local communities.
Averrhoa Nature-Based Solutions is set to channel approximately 1.5 billion euros into projects and capital ventures worldwide, with a primary focus on emerging markets, developing economies, and local populations.
Pooling their expertise, Ardian and aDryada have united forces to establish and cultivate a robust portfolio of projects. The synergy between these two entities, each boasting a substantial track record of investing in energy transition and reforestation endeavours, equips them to not only identify exceptional projects but also provide unwavering support for their sustainable growth alongside governments and local communities.
In the wake of the Paris Agreements, governments and corporations alike have embraced ambitious, long-term targets for reducing carbon emissions. Considerable investments have been allocated to mitigate future emissions through electrification, low-carbon energy generation, and enhanced efficiency measures.
Nevertheless, the magnitude of this challenge necessitates a role for carbon sequestration in addressing existing emissions and offsetting future emissions that are challenging to eliminate.
According to the Intergovernmental Panel on Climate Change (IPCC), in scenarios aiming to limit global warming to 1.5°C, rapid scaling of sequestered emissions is imperative in the short term, facilitating the removal of 0.5 to 1.2 gigatonnes of CO2 annually by 2025, and subsequently 6 to 10 gigatonnes of CO2 worldwide.
A global agreement on the urgent need to increase the planet's capacity for carbon sequestration and the burgeoning ambitions of economic stakeholders in this field are driving the voluntary carbon credit market toward strong growth over the coming decades.
Projections suggest that the carbon credit market will expand by a factor of approximately 35 by 2050. Global demand for voluntary carbon credits has already surged nearly fourfold over the past five years, surging from 43 million metric tonnes of CO2 equivalent in 2017 to 155 million metric tons in 2022.
In this context, nature-based solutions, particularly those linked to carbon sequestration in ecosystems and forests, represent an indispensable response to corporate climate and biodiversity objectives while concurrently delivering sustainable economic and social advantages to local communities.
The Averrhoa Nature-Based Solutions strategy fulfills the criteria of an impact fund geared towards reducing global greenhouse gas emissions, aligning with Article 9 of the European SFDR regulation. Oversight of the Averrhoa Nature-Based Solutions fund will be vested in Ardian France, with aDryada serving as an advisory partner.
Mathias Burghardt, a Member of the Executive Committee and Head of Infrastructure at Ardian affirms, "Ardian aspires to emerge as a global leader in investing in nature restoration projects. In harmony with the Paris Agreement's aspiration to limit temperature increases to 1.5°C by 2050, our initiatives will play a pivotal role in capturing approximately 5 gigatons of unavoidable carbon emissions annually by that target date.
"Through this strategic collaboration with aDryada, Ardian brings forth a robust solution that upholds the principles of community respect, thereby advancing the carbon neutrality and biodiversity preservation objectives of our valued customers, portfolio firms, and industrial collaborators."
Laurent Fayollas, Deputy Head of Infrastructure at Ardian, underscores Ardian's pioneering commitment to the energy transition through Averrhoa Nature-Based Solutions. He highlights that this initiative benefits from the experience of Ardian's infrastructure team in investing in climate action and the energy transition, as well as aDryada's proficiency in developing projects that foster biodiversity and the energy transition.
Averrhoa Nature-Based Solutions is dedicated to investing in long-term projects for the restoration of forests, mangroves, and wetlands, facilitating the sequestration of approximately 150 million metric tonnes of carbon while also delivering substantial net gains in terms of biodiversity and socio-economic benefits for local communities.
Fabio Ferrari, CEO of aDryada, expresses pride in the partnership with Ardian and the launch of Averrhoa Nature-Based Solutions. He notes that this strategy, with its ambitious investment of around 1.5 billion euros in high-quality sequestration projects, particularly in emerging nations, will significantly expedite action to combat climate change and restore biodiversity, fostering long-term environmental and social value.
In summary, Averrhoa Nature-Based Solutions represents a groundbreaking alliance between Ardian and aDryada, poised to make a profound impact on global sustainability, biodiversity conservation, and community well-being while playing a vital role in addressing the urgent challenge of carbon emissions reduction.
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Source: Ardian
