Funding 

Cooling the Climate is pioneering a breakthrough digital financial model to restore and protect the Amazon Rainforest, which is our planet's most vital land-based cooling and water regulation organ. By leveraging innovative financial architecture, we aim to finance direct payments for eco-services to Indigenous and forest communities, stabilize the Amazon’s essential climate functions, nurture an emerging bioeconomy, and generate global engagement. This model can later be adapted to restore ecosystems worldwide.

Our project is supported by a comprehensive financial structure that integrates public and private sector funds. Development banks, green finance institutions, philanthropic funds, green bonds, international donors, and family offices will finance our efforts through senior debt, first-loss equity, and other innovative instruments. Funds will be managed with high corporate governance standards, including milestone-based disbursement, multiple levels of auditing, and fraud prevention measures. We tailor programs and investments to align with the specific goals and ambitions of participating organizations, ensuring flexibility and shared success.

Proposed Financial Structure for Cooling the Climate

  1. Parent Financial Entity: Global Amazon Regeneration Holdings (GARH)

    • Purpose: Centralized management for global operations, offering bioregional investment products such as green bonds, carbon credits, and blended finance instruments. 

    • The ownership structure will include ACTO as the majority shareholder to align with strategic cooperation priorities, while Indigenous and local communities will hold significant leadership roles, direct benefits, and governance rights. Ethical investors will contribute capital under strict ESG principles, and a Team Pool Ownership Fund will hold equity for the people involved in guiding and running the organisation.

    • Profits will be repurposed to a large extent towards more regenerative economic action. 

    2. Arara Digital Financial Platform Holding (ADFPH)

    • Purpose: Headquartered under the same roof as GARH, this platform manages fund distribution, technology deployment, and regional governance. 

    • The ownership will be in the hands of Indigenous and Local Communities, Investors, a Team Pool Ownership Fund and ACTO to ensure coordination and governance.

The Arara Digital Financial Platform Holding

Capital Stack and Investment Strategy

  • Blended Finance Approach:

    • Top Layer: Senior debt and guarantees from governments and development banks.

    • Middle Layer/Mezzanine: Green bonds and moderate-yield investments for institutional investors.

    • First Loss Equity: Grants and concessional finance to de-risk investments.

    • By securing U.S.-based funding, managing grants, and building credibility, our fiscal sponsor can enhance the Cooling the Climate initiative's ability to scale its impact and coordinate with GARH. 

  • Debt-for-Nature Swaps: Converting external debts into conservation funding for some sovereigns.

  • Revenue Streams:

    • High-integrity carbon credits.

    • Payment for Ecosystem Services (PES), tokenized for rewarding stakeholders.

    • Sustainable bioeconomy initiatives from improved agroforestry.

    • Improved tax revenue for local and national governments.

Implementation Highlights 

This is the largest project of its kind in the world and will be phased in. 

  • $2 billion per month allocated for transformative restoration:

    • Indicative $500 monthly payments to 1.5 million families for forest guardianship based on result monitoring.

    • 50,000 school internet-based education and agroforestry programs and solar infrastructure for 1.5 million households.

    • 10,000 fire brigades and 100,000 seed collectors mobilized.

    • Coordination with governments for strict control to combat illegal activities.

Monitoring and Evaluation
An AI-driven Amazon Resilience Observatory will track ecological, social, and biodiversity outcomes, with audits by international bodies and Indigenous councils ensuring transparency.

By integrating cutting-edge financial tools with inclusive governance, Cooling the Climate not only aims to stabilize the Amazon Rainforest and mitigate global warming but also ushers in a new paradigm of regenerative economies that benefit people and the planet.

‘’We live on a live planet that can respond to the changes we make, either by canceling the changes or by canceling us.” 

— James E. Lovelock, The Revenge of Gaia