Request for Information (RFI)

Building a Multi-Billion Dollar Forestry and Wood Products Investment Pipeline for the Greenhouse Gas Reduction Fund and Aligned Capital Sources

RFI Submission Period Closed on June 16, 2024

Latest Updates:

  • QV received 120+ RFI submissions, with total project costs of more than $7.5B and nearly $4.5B in financing need.

  • Due to the large number of submissions, our review team will need some time to carefully evaluate each project.

  • At present, we do not have the capacity or funding to work with each and every proponent on project development and transaction structuring.

  • Please contact ggrf@quantifiedventures.com if you would like to discuss opportunities to support QV in working with additional project proponents.

  • Our next step is to send email notifications to project proponents in early July.

  • QV will group RFI project submissions into 2 categories and notify project proponents in early July which category their project falls into:

    Category 1: Advance to further diligence

    Category 2: Not a good fit for further diligence at this time

 
 

SUBMISSIONS CLOSED

The RFI submission deadline was Sunday, June 16.

For more information about the RFI, watch the webinar (recorded May 30) and download the one sheet.

Webinar recorded May 30, 2024. Download webinar slides (PDF)

The U.S. EPA’s $20 billion Greenhouse Gas Reduction Fund grants present a once-in-a-generation opportunity for projects in the forestry and wood products sector. The funds will waterfall downward to capitalize green banks and community lenders, supercharging an impact-first investment ecosystem for projects that reduce greenhouse gases. With an election around the corner, GGRF recipients want to obligate these investment dollars in the span of months, not years.

The projects currently most likely to benefit from this investment capital are those that green banks and conventional banks have spent the last 20 years supporting: clean energy, clean transportation, and energy efficiency.

 

The U.S. Endowment for Forestry and Communities is the Forestry and Wood Products sector supporting partner for QV’s RFI

What’s missing? Forestry and wood products, such as:

  • Agroforestry and sustainable land-use practices

  • Biochar

  • Forest conservation and sustainable forest management

  • Mass timber and sustainable construction materials

  • Reforestation and afforestation projects

  • Sustainable packaging

Forestry and wood products investments are prime candidates for GGRF dollars – but only if they can be investment-ready when the doors open. This moment will set the trajectory of climate investments for the next 50 years. The forestry and wood products sector cannot miss out!

Quantified Ventures, with support from the U.S. Endowment for Forestry and Communities, has launched a national Request for Information (RFI) to build a pipeline for forestry and wood products to receive investment from the GGRF and aligned capital sources.

Do you have a forestry and wood product project that will be ready within the next 12 months?

Project developers, partnerships, non-profits, local governments, and for-profit companies should submit projects that meet these three criteria:

  1. Deliver significant greenhouse gas reductions

  2. Will repay investment through a credible revenue stream

  3. Will be ready to receive investment within, at the latest, the next 12 months

Identified priority projects will receive support from Quantified Ventures for further development, technical assistance, and investment structuring to help secure investment from GGRF awarded entities and aligned capital sources in late 2024 and early 2025. The U.S. Endowment for Forestry and Communities is partnering with QV on this RFI to provide additional transaction development support to the Forestry and Wood Products sector.

SUBMISSIONS CLOSED

The RFI submission deadline was June 16, 2024.

QV will connect directly with groups who submitted projects about next steps.

Please review this additional information for further guidance about the RFI process, the GGRF, and what projects might be good candidates.

If you have additional questions, please email us at ggrf@quantifiedventures.com.

Project Examples: Forestry and Wood Products

Sustainable Forest Management

Managing forests for more environmental and social outcomes is a viable business proposition, but will not generate the risk-return profiles to which mainstream investors are accustomed. Low-cost green financing can enable sustainable forest management, like with the $90M+ Exemplary Forestry Investment Fund that Quantified Ventures, Maine Mountain Collaborative, and the New England Forestry Foundation have set up to acquire and sustainably manage 100,000+ acres of Maine forests.

Reforestation and Afforestation

Historically funded by grants and public spending, reforestation and afforestation projects are becoming increasingly financeable due to carbon credit markets. QV and Bosland Growth have used this strategy of blending federal grants and private capital backed by carbon credit sales to implement forest restoration that would not otherwise occur.

Mass Timber

Mass timber, an emerging category of sustainable building products, holds promise of reducing carbon emissions in the buildings sector by offering a replacement material to steel and concrete, and storing forest carbon in long lived wood products. Low cost financing can support the adoption of these new building materials, supporting the growth of sustainable construction. More architects and builders are turning to mass timber, like this award-winning commercial office building renovation in the nation’s capital.

Biochar

A form of charcoal, biochar is a carbon-rich material made from the partial combustion of biomass wastes. When applied soils, biochar enhances productivity, remediates pollutants, in addition to its carbon sequestration benefits. Biochar is an accepted approach to recycling organic matter and it has a number of applications from agriculture to forest health to stormwater management and wastewater treatment.

 

RFI Frequently Asked Questions (FAQs)

  • Duke University’s Nicholas Institute for Energy, Environment & Sustainability and Quantified Ventures co-authored an analysis of environmental infrastructure projects that meet GGRF eligibility.

    The Greenhouse Gas Reduction Fund (GGRF) specifies three “priority” areas: distributed energy generation and storage, net-zero emissions buildings, and zero emissions transportation. However, projects may also be outside of these three priority areas and instead fall within one of the seven project categories laid out by the Biden Administration’s Justice40 initiative:

    (1) Climate change
    (2) Clean energy and energy efficiency
    (3) Clean transportation
    (4) Affordable and sustainable housing
    (5) Training and workforce development
    (6) Remediation and reduction of legacy pollution
    (7) Development of critical clean water infrastructure

    Forestry and Wood Products are eligible under these criteria.

  • First and foremost, projects must reduce or avoid greenhouse gas emissions and other air pollutants. Additionally, one of the primary goals of the GGRF program is to catalyze private investment into climate projects.

    Demonstrating additionality and the ability for projects to pull in additional capital beyond GGRF financing will be critical. A full list of project requirements is below:

    (1) Reduce or avoid greenhouse gas (GHG) emissions, consistent with U.S. climate goals

    (2) Reduce or avoid emissions of other air pollutants

    (3) May not have otherwise been financed

    (4) Mobilize private capital

    (5) Support only commercial technologies, defined as technologies that have been deployed for commercial purposes at least three times for a period of at least five years each in the U.S.

  • The original Notice of Funding Opportunity (NOFO) was published in July 2023 and focused primarily on the three “priority” areas described above (What kind of projects are eligible?).

    In August 2023, the EPA issued an updated NOFO (see Related Documents) that expanded eligibility to include all the Justice40 program areas, including climate change, remediation and reduction of legacy pollution, and development of critical clean water infrastructure.

  • Money will flow first from the EPA to selected awardees. Each of the sub-recipients will then deliver funds to their network of green banks, CDFIs, and credit unions, as well as making loans directly.

    The $1 billion environmental infrastructure investment pipeline that QV is building through this RFI will be connected to these GGRF recipients and other aligned capital sources.

  • At this stage, little information has been released on the specific terms of GGRF-supported financing. QV will update project proponents on terms as we receive them through our ongoing relationships with GGRF entities. The interest rates and loan terms will vary depending on the project, borrower, and lender.

  • The interest rate and loan terms will vary depending on the project and lender, but an estimated interest rate is 0.5% – 4%.

  • Required emissions reduction estimates include:

    (1) reduction and avoidance of greenhouse gas emissions (e.g., carbon dioxide, methane); and
    (2) the reduction and avoidance of other air pollutants (e.g., particulate matter 2.5, sulfur dioxide, ammonia).

  • Methods for measuring and calculating greenhouse gas emission reductions are determined by each GGRF awardee in their respective applications.

    Projects that can credibly demonstrate how environmental and social outcomes will be measured and verified are likely to be prioritized for funding.

  • Quantified Ventures has 10 years of experience as a market leader in evaluating, structuring, and capitalizing forest and wood product investments.

    We will work with selected projects to rectify weaknesses in GGRF investability, identify the appropriate transaction structure or financial products, align with GGRF loan application procedures, and connect to GGRF-capitalized lenders and/or other aligned capital sources.

  • There is no cost for applicants to work with QV during this process! Recognizing the need to obligate these funds as soon as possible, the U.S. Endowment for Forestry & Communities (USEFC) is supporting QV’s efforts to connect environmental infrastructure, forestry, and wood products initiatives with project financing. Thanks to USEFC’s generous support, QV is able to offer our services at no cost for a period of 6-9 months to select entities who responded to this RFI.

  • In this context, ready to receive investment within, at the latest, the next 12 months does not mean that a project needs to start construction within 12 months. An ideal project will have a well-developed financial plan with identified repayment streams, the necessary legal capacity to receive funds, and necessary permits within 12 months.

  • Yes, projects that use GGRF funds to scale ongoing activities, rather than using them for new activities, are eligible to pursue GGRF funding.

  • Yes, the GGRF is anticipated to target funds towards projects in historically disadvantaged communities, particularly those meeting Justice40 Initiative requirements.

  • Yes, the GGRF is only available for U.S.-based projects.