Building a $300MM+ Pipeline for Natural Climate Solutions Projects
With funding from the U.S Endowment for Forestry and Communities, QV launched a Request for Information to identify, assess, and position investable natural climate solutions projects focused on forests and wood products.
QV sourced more than 120 projects, which were reviewed and vetted for basic feasibility, financial structure, and investment readiness to build a financeable pipeline of emissions-reducing investments.
Through structured due diligence, investor memo development, and investor connections, QV helped to advance 7 projects with financing needs of $300 million-plus into active investor engagement, while developing tools and processes for future pipeline development.
Problem
Investors such as family offices and impact investment firms are seeking scalable, finance-ready projects in the forestry and wood products sector. However, there was no clear, structured pipeline of investable opportunities, and many potential projects lacked the financial models, documentation, or investor readiness to secure capital. Additionally, the anticipated federal funding source, the Greenhouse Gas Reduction Fund (GGRF), became uncertain due to political shifts, further complicating financing pathways. QV focused on addressing both challenges: creating a structured process to source and vet a strong pipeline of projects, and connecting high-potential sponsors with diverse capital sources such as green banks and private investors.
Approach
QV designed a multi-stage approach beginning with a public Request for Information process, including outreach materials and an online submission portal. QV reviewed more than 120 project submissions for basic feasibility, financial structure, and investment readiness. The top 12 projects advanced to a detailed due diligence phase where QV built standardized data rooms, developed financial models using its proprietary templates, and created detailed investment memos summarizing each project’s key characteristics and risks. From there, six projects were prioritized for investor engagement. These included biochar production facilities, biomass power plants, and sustainable building materials ventures, with financing needs ranging from $5 million to $100 million. QV also facilitated direct engagement with green banks in Illinois, New Mexico, and Colorado, while broadening the investor pool to impact investors.
Impact
Through this engagement, QV advanced 7 high-potential NCS projects to engagement with green banks or private investors, representing a collective financing need of more than $300 million. QV’s structured review process and financial modeling improved project readiness and highlighted broader market insights: the need for early-stage development equity, pre-development technical assistance, and clearer financing pathways tailored to company structure and project maturity. Although the original focus on GGRF funding shifted, the project succeeded in establishing a robust, adaptable pipeline development model.