Crystal Clear Clyst Bond
East Devon District Council is using a Community Municipal Investment Bond (CMIB) to fund the conversion of farmland into woodland in the Clyst Valley. This initiative will create carbon and biodiversity units to be sold to local businesses, supporting their sustainability goals. The project focuses on broadleaf woodlands, enhancing biodiversity, water quality, and flood risk management, while promoting community involvement in environmental conservation.
This project is one of 24 case studies published in 2024, alongside a report evaluating the process, impact and value for money of NEIRF Rounds 1 and 2.
Access full case studyThe Clyst catchment is in ‘poor’ condition. Greenhouse gas emissions continue to rise. Extreme rainstorms and flooding, heat stress and low summer flows are likely in the Clyst Valley as a result. Biodiversity and bio abundance continues to decline. Some people suffer from high stress levels and inactivity.
The solution is to treble the tree canopy in the Clyst Valley from its present average of 9.3%. Facilitate conversion of farmland to woodland by blending cash from publicly funded grant schemes with private finance from Woodland Carbon and Biodiversity Credits in particular.
Our study area is the whole catchment of the Clyst Valley within which is the Clyst Valley Regional Park, which is half the size of Exeter. This is a major area of green infrastructure delivery led by East Devon District Council (EDDC) but backed by 17 organisations from private, public and charitable sectors. The east of Exeter is one of the fastest growing communities in the country. With major companies such as EON, EDF and many smaller environmental start-up businesses, we expect high demand for voluntary carbon credits in particular.
We will explore whether a Bond could be created, for example, a Community Municipal Bond. However, the financial mechanism needs to be appropriate to the levels of revenue our research with local businesses indicates. Therefore, a simpler mechanism such as a bank loan might be best. Is EDDC the best organisation to set this up, or should we work through an established company such as EnTrade. Would a new charitable trust be a better Governance vehicle, and realise higher carbon prices for local offsetting?
Project goals
1) To work with 10 farm businesses in the Clyst Valley and establish the ‘tipping point’ (economically, socially and environmentally) that would persuade farmers to convert pasture/arable to woodland.
2) For a minimum 30 businesses (10 large and 20 small/medium sized businesses), to quantify their willingness to buy carbon, and other ‘ecosystem services’ that don’t presently have a market.
3) To produce a 30 year business plan demonstrating how capital could be raised to fund 30% canopy and predicted rates of return for investors. To identify the best mechanism to match buyers with sellers and get us ready for project launch.
Project Aim
Work with farmers and local businesses to establish a mechanism by which private investment can be matched with public finance to enable us to increase tree cover in the Clyst Valley from 10% to 30%.
Project partners
Funding model
A Bond could be created from investor capital but could be initiated with Community Infrastructure Levy, which is collected by EDDC, some of which is earmarked for delivery of the Clyst Valley Regional Park. EDDC could act as guarantor, thereby increasing the chances of attracting investors. EDDC could also pool capital from developers who are unable to achieve Biodiversity Net Gain within their red/blue development boundary.
Future Investment Potential
Future investment will contribute to :
Clean and plentiful water
Mitigation of and adaptation to climate change
Thriving plants and wildlife
Out of date? Contact us at info@ecosystemsknowledge.net