22. December 2021
Kvika Bank, Kvika Asset Management and Klappir Green Solutions sign a letter of intent to establish a Climate Fund.
The purpose of establishing the fund is to create a platform for investors to come together and invest in land reclamation, which includes mitigation measures for climate change. Such land reclamation will initally focus on certified forestry, and later also other mitigation measures, including wetland restoration and other measures to reduce land use emissions, in parallel with producing certified carbon units.
It is assumed that the fund invests in land improvements that produce certified carbon units that count towards Iceland's international commitments to reduce carbon emissions. The land improvements planned with the establishment of the fund are profitable, job-creating and support the transformation of agriculture in Iceland. The aim is for the fund to support in this way three pillars of sustainable development; economy, society and the environment.
When establishing the fund, the SDG´s, especially no. 17 on co-operation between the public and the private sector, and the private sector´s support for projects that contribute to the sustainable development of the society, is taken into account.
It is the common will of the parties with executing the declaration of intent to work on analyzing the operational efficiency of such fund and to formulate its implementation.
Conclusion on the continuation of the project will be available in early 2022.
Jón Ágúst Þorsteinsson, CEO of Klappir Green Solutions: „A large part of the greenhouse gases emitted into the atmosphere are due to the decline of ecosystems. Land reclamation can sequester carbon, share water, protect and build up soil, purify air, provide shelter and strengthen habitats for many living things. Land reform also includes important business opportunities, including certified carbon units, which will be a valuable resource that can be sold on international markets. Innovation in green industry, finance and agriculture will be one of the cornerstones of the project.“
Marinó Örn Tryggvason, CEO of Kvika: „Climate issues are without a doubt the most important task of our generation and I believe that the private sector is well suited to find sensible solutions. Initiatives such as this can be a sensible and profitable way for investors to make an impact. Iceland is at the forefront of renewable energy and can also become a leader in climate change. If successful, climate projects can become an important export industry in the future.“
Hannes Frímann Hrólfsson, CEO of Kvika Asset Management: „A race has begun towards carbon neutrality in the world and it is clear that this goal will not be achieved unless the private sector contributes and works together. This new fund, which the parties have committed to examining the viability of, has all the potential to be an important contribution, which also includes a real and measurable impact on climate issues in Iceland.“