Years of poaching has pushed South Africa’s black rhinos to the brink. Could a first-of-its-kind conservation initiative turn the tide?
The scheme, launched by the World Bank, brings the principles of corporate finance to wildlife conservation, in the form of a $150m five-year ‘rhino bond’.
The bond will fund rhino protection, and investors will get a return on their money if the population grows. After five years they will also receive their investment back, which would be covered by donors. If numbers drop, investors may lose their money.
The scheme represents a new approach to conservation financing because it passes risk to investors and allows donors to pay for successful conservation outcomes. It remains to be seen to what extent investors will be willing to take the risk.
Dr Andrew Terry of the Zoological Society of London, which helped develop the bond, said its launch was “a watershed moment for wildlife conservation”.
Image: David Clode
