Key Points:
A new multi-year partnership between NESsT and Erol Foundation will improve forest conservation by catalyzing local sustainable enterprises in areas of high biodiversity. The NESsT Amazonia incubator will support an initial cohort of 12 conservation enterprises that improve forest conservation in the Amazon basin and provide sustainable livelihoods to local communities.
Home to more than 30 million people and 10% of the Earth’s species, the Amazon contains 20% of the world’s fresh water, and serves as an important anchor for South American climate and rainfall. Deforestation and unsustainable development has led to ecosystem stress, increased fire occurrence and a rise in carbon emissions that threaten the lives of communities living in the Amazon first, and the global climate.
The enterprises in the NESsT Amazonia Incubator span 15 different value chains, protect 13 million hectares of rainforest, and support the livelihoods of more than 9,000 families.
The NESsT Amazonia Incubator was created to improve forest management and provide quality job opportunities to local communities in the Amazon rainforest by supporting conservation enterprises operating in areas of high-biodiversity.
Erol Foundation joins existing partners including the Climate and Land Use Alliance (CLUA), USAID and WWF.
“We’re very excited to announce our new partnership with NESsT. Erol’s grant will enable NESsT to work alongside the chosen enterprises and provide them with financial support as well as business mentoring to help them grow and achieve their goals.”
Amazonas, Brasil
Home to more than 30 million people and 10% of the Earth’s species, the Amazonia contains 20% of the world’s fresh water, and serves as an important anchor for South American climate and rainfall.
Rampant deforestation largely caused by human activity has transformed the Amazon landscape, not only damaging its capacity to absorb carbon dioxide, but also increasing emissions of other greenhouse gases, including methane, nitrous oxide, aerosols, and sooty black carbon (Smithsonian Mag, 2021). A first-of-its-kind analysis from more than 30 scientists published earlier this year revealed that the Amazon rainforest is now a net contributor to warming of the planet.
“This data reinforces the urgency of supporting communities that understand the responsibility that comes with enjoying the products of the Amazônia while living in the standing forest,” shares Marcelo Cwerner, an entrepreneur and resident of the Brazilian Amazon who is now supporting local enterprises as NESsT Portfolio Manager.
Açaí berries
“Açaí, for instance, generates an average estimated profit of USD $700/hectare annually, while soy and cattle yields an estimated profit of less than USD $200/hectare annually, not calculating the environmental collateral damage. NESsT’s Amazonia Incubator is enables individuals to participate in the protection of the Amazon. We can help create jobs and income in the forest, boosting the commerce of nuts, cacao, biocosmetic oils and the bioeconomy as a whole.”
Design of the Program
The NESsT Amazonia Incubator includes two cohorts. The first consists of enterprises that improve value chains including sustainable and regenerative agriculture, fisheries, Brazil nuts, biocosmetics, ecotourism, and açaí, among others. The second cohort seeks enterprises that incorporate climate change technology into Amazon value chains.
Brazil nuts
“It is my belief that the Amazon could disappear during our lifetime and we continue to discover the science behind this! With Erol Foundation’s support of the NESsT Amazonia Incubator we can support the enterprises that have honed conservation through regenerative harvesting practices of biodiverse products. ”
The incubator began its first selection process in January 2021. The number of applications submitted in one month revealed a strong need for financing for Amazonian enterprises.
Interested enterprises span across 15 different value chains, protect 13 million hectares of rainforest, and support the livelihoods of more than 9,000 families. Selected enterprises will receive financing in the form of grants and recoverable grants and business mentoring delivered by NESsT’s local teams in Brazil, Colombia, and Peru.
“We are eager to begin the next phase of our efforts to curb climate change in the Amazon basin. To provide impact on a much wider scale we would love to connect with climate tech entrepreneurs and investors to apply technology solutions to these important problems,” concludes Comolli.
About NESsT
Since its launch, NESsT has trained 21,000 entrepreneurs, mentored 1,200 enterprises, and financed 200 entrepreneurs that have benefited 700,000 underserved individuals in emerging market countries.
About Erol Foundation
Erol invests in effective organizations and courageous leaders with the potential to move our world to a more sustainable, just and prosperous future.