Project: Amazon Biome Regenerative Economy Outcomes Fund
State of development: Current
Stage of development: Early stage
Stage notes: Early-stage design 
Type of instrument — Impact Bond: Yes; Outcomes Fund: Yes; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: No; Other: 
Rationale for using outcome-based finance: "This project has a Multi-stakeholder approach tackling environmental expertise (WWF), nature-based tourism focused, business model focus, result-based financing structuring (Dalberg) and impact investment /venture building/early stage VC (Mutual Empathy) provides strong team for securing funding and financing, structuring and implementing this mechanism. Also combines technology, ecotourism, and environmental finance. Connects local businesses with the marketplace and funding for conservation/restoration. Measure and enhance conservation/restoration actions. Generating value for: hosts, travelers, donors and ecosystems.
This mechanism will continue to be replicated and expanded in the Amazon, Colombia and Latin America, from the social and environmental impact. The growth potential of the market, technology, allies, impact results, blended finance, environmental finance allow us to generate value both in tourism and in the social/environmental sector and have the ability to scale the business model and impact.
This guarantees the sustainability of the results and the value for environmental funders in the long term."
Key challenges to launch: We focus on the first challenge, Awake Travel has experience in implementing RBF mechanisms successfully. The UK Pact program awarded Awake Travel financial resources for implementation. We are looking to scale that work in collaboration between Awake, WWF Colombia and Mutual Empathy/RWC Pioneering an Outcomes Fund on regenerative economy for the Amazon has been challenging, even with strong partners like WWF. We have been able to contribute funding for the early stages but the need of a provider to structure the mechanism like Darlberg is necessary. These organizations require advisory fees and we have been lucky to get their support for this initial stage. The funding and support which could be provided by the Outcomes Accelerator is essential to hire Darlberg. These RBF mechanisms are usually funded by development banks, foundations, governments which have design funding resources.
Social/developmental challenge: "Deforestation in the Amazon leads to GHG emissions and loss of biodiversity, compounded by the lack of sustainable livelihoods in local communities. Problems anchored to high levels of multidimensional poverty in rural communities of the Amazon (including indigenous and peasant communities), prevailing productive activities related to deforestation.
Nature tourism as a mitigant is promising, but presents challenges: 
-Lack of sufficient capacities in tourism and conservation. 
-Lack of articulation between actors in the chain. 
-Little technological adoption in nature tourism businesses creates friction in the purchase.
-Lack of positioning in the market of emerging destinations weakens the effective generation of income.
-Lack of cost-efficient systems for measuring socio-environmental impact limit the generation of value, awareness and decision-making. 
-There is a gap in the sector to access the capital available in tourism and conservation, as it is a highly fragmented and informal chain."
Expected intervention model: To carry out a feasibility study for the design of a Payment by Results Fund (Amazon Biome Regenerative Economy Outcomes Fund) whose purpose is the conservation of habitat and biodiversity with practices in the regenerative economy in the Amazon Biome. A roadmap will be designed with the essential steps to design said fund and issue the impact bonds that are identified as priorities (Nature Based Tourism, Wildlife Conservation, Regenerative Agriculture and Traditional Ancestral knowledge), including the eligibility criteria and impact indicators, the field actions that can be supported, the procedure required, actors involved and their profiles, monitoring, verification and reporting mechanisms, operating policies and the financial model for the structuring, certification, marketing and issuance of the fund. The initial challenge to be designed and issued is Nature-Based Tourism (NB Tourism) which is the main focus of this proposal.
Policy sectors — Employment and private sector development: Yes; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: No; Environment and climate change: Yes; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Primary SDG goal: 8,13,15
Country income classification of beneficiaries — Low-income: No; Lower-middle-income: No; Upper-middle-income: Yes; High-income: No
Notes: Data for this pipeline project was last updated in August 2023
Delivery location: Colombia