Mitigation land banking involves restoration of degraded land to a higher (original) ecological value. Economics become involved when a development project seeks to purchase restoration-linked credits rather than mitigate development related impacts at their own site. The operator of a land bank buys degraded land in the same ecological zone or watershed and remediates the damages. The U.S. Army Core or Engineers through a committee process assigns the amount of credits for specific remediation work. These credits are then sold to a developer. The developer benefits by an expedited approval process and certainty on the costs of remediating damages from the development.
The conservation finance market currently experiences $52 billion of annual deal flow, yet that’s within a small and fragmented community. Damages from the Horizon Deepwater disaster have created a number of large opportunities on the U.S. Gulf Coast.
Data according to Credit Suisse. Information is current as of January 2017 and subject to change.
For informational purposes only. Nothing herein constitutes an offer to sell or solicitation of an offer to purchase any security, or a recommendation or advice about an investment.