Taking care of our natural resources—like forests, rivers, and lakes—is more important than ever. All the evidence suggests that this requires investments in the acquisition, rehabilitation and restoration of watersheds and natural assets from both public and private sector at levels far higher than what we have today.
One exciting approach to protecting these valuable assets is the Common Asset Trust (CAT) model and outcomes-based financing mechanisms. The Natural Assets Initiative, together with Conservation Halton, the cities of Hamilton and Burlington, and Royal Botanical Gardens, have completed foundational work to start designing a hybrid approach that builds on the CAT model while recognizing current governance and financial arrangements in the Grindstone Creek Watershed—and they are now seeking funds to put this into action.
What is the Common Asset Trust Model?
A Common Asset Trust is a group dedicated to looking after our natural resources. The main goal is to ensure these resources are used wisely so that everyone benefits now and in the future. Here are the key parts of the CAT model:
- Getting Funds: The CAT gathers money from different sources—like businesses, government grants, and private donations. This money helps support projects that protect the environment.
- Investing in Projects: The funds are used for various projects, such as planting trees, cleaning rivers, and restoring wildlife habitats.
- Measuring Success: Each project has specific goals, like how many trees to plant or how clean a river should be. Success is measured based on whether these goals are met.
- Sharing Benefits: If a project is successful, some of the money is returned to the investors, rewarding them for their support in protecting the environment.
Why Do We Need This?
Right now, there isn’t enough funding to tackle the environmental challenges we face. Experts estimate that we need hundreds of billions of dollars each year to protect and restore our ecosystems. The CAT model offers a new way to bring in the necessary funds through community engagement and project success.
This approach recognizes that natural assets are a shared resource—they provide shared benefits and decline in their health could pose shared risks, meaning businesses and other entities have a direct interest investing to maintain these ecosystem services.
The “Investing in Watersheds” Project
One key initiative proposing to test a hybrid CAT model is the “Investing in Watersheds” project in the Grindstone Creek area of Ontario, Canada. This region is vital for providing clean water, habitats for wildlife, and recreational spaces for the community.
The hybrid approach will help integrate elements of the CAT model without attempting to overhaul current governance and financial arrangements for the watershed, making it more adoption-ready, and providing insight into how aspects of a CAT could be scaled in other watersheds.
Building Together
Over the years, various organizations have worked together to assess the value of these natural services and plan for increased investment in nature. Choosing Grindstone Creek as a pilot site is a smart move, as there’s already interest and collaboration among local groups.
What’s Next?
- Engaging with Partners: We’ll work with local groups to refine our plans and funding models.
- Raising Funds: We aim to secure investments to further develop the project in Grindstone Creek.
- Preparing Agreements: We’ll set up agreements to ensure everyone benefits from the project.
Conclusion: A Shared Future
To make the “Investing in Watersheds” project a success, we’re looking for support to fund our team and activities over the next few years. By investing in a hybrid Common Asset Trust model, we can protect our natural resources and create a healthier environment for everyone.
Join us in making a positive impact on our planet! Together, we can ensure a sustainable future for generations to come.
Want to support this project? Connect with us at info@naturalassetsinitiative.ca
