Business Model Innovation: Climate Change Adaptation and Resilience

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Entergy Corporation for its support of pilot projects and methodologies to make wetlands enhancement and restoration a viable source of carbon offsets, thus spurring private investment in wetlands projects which have value for climate change adaptation and resilience as well as GHG mitigation.

Entergy supported the development of the first wetland carbon methodology that introduced wetland restoration to emissions trading markets and the first wetland carbon pilot project in the nation. In 2015 a two-year assessment, supported by Entergy's Environmental Initiatives Fund, and prepared in partnership by Tierra Resources and The Climate Trust, determined carbon finance revenue can provide up to $1.6 billion in critical funding to assist with wetland restoration over the next 50 years.

Study findings also showed that restoration in Louisiana has the potential to produce over 1.8 million metric tons of offsets per year; almost 92 million tonnes over 50 years. Entergy's commitment to the study stems from the company's mission to create sustainable value for all its stakeholders. Wetlands play a crucial role in storm protection for many Entergy communities, helping preserve industries, businesses, homes, and livelihoods along with Entergy's own facilities and assets.

Operating electric utilities in Texas, Arkansas, Louisiana and Mississipi and a wholesale energy commodities business, Entergy has annual revenues of more than $12 billion and approximately 13,000 employees.

The Nature Conservancy for leveraging its expertise, reputation, fundraising abilities and political skills to catalzye investment and action for climate change resilience and adaptation. Over the last decade, TNC has connected its core mission-"protecting nature, preserving life"-with climate change adaptation and resilience by supporting and developing green and hybrid gray-green infrastructure solutions.

In the United States, TNC has partnered with CH2M, AECOM and Environmental Sciences Associates around green infrastructure and worked with local governments and smaller consulting firms on a wide range of climate resilience projects. Through its outreach and education to members and others, TNC is raising awareness that natural systems and natural infrastructure help protect people and property.

TNC is building on its success with innovative transaction-based financing structures-such as fishing quota acquisition, debt swaps and water funds-to create new resources for conservation and climate change adaptation through its NatureVest unit. A landmark debt swap project that closed in December 2015 will benefit the Seychelles, a small island state that faces severe climate change risks and is burdened with a high level of distressed sovereign debt.

The Nature Conservancy raised $23 million in impact capital loans and $5 million in grants to buy-back $29.6 million of Seychelles debt at a 5.4% discount. The cash flow from the restructured debt is payable to and managed by the new Seychelles Conservation and Climate Adaptation Trust (SeyCCAT), and it will support improved management of coasts, reefs and mangroves; repayment of the impact investors; and capitalization of SeyCCAT's endowment.

One of the largest global conservation organizations, TNC employs about 3,200 people worldwide. The nonprofit has more than 1 million members and its revenues for the year ending June 30, 2015 were $957 million.