As global temperatures exceed the pivotal 1.5C benchmark (FT), the urgency to mend our planet's damaged ecosystems has hit an all-time high. According to the UN Convention to Combat Desertification (UNCCD), modern agriculture and global food systems have accounted for 80% of deforestation, 29% of GHG emissions, and an enormous loss to biodiversity (Carbon Brief). In addition, human activities have altered 70% of the Earth’s land surface, degrading up to 40% of it. One can therefore understand the requirement for significant restoration to reduce the detriment to global health. 

Among the number of actors engaged in such restoration efforts is the company Ponterra. Born out of a profound dedication to natural ecosystem restoration, Ponterra is a project developer and operator of restoration projects for degraded agricultural lands. With their current project development in Panama’s Azuero Peninsula, Ponterra hopes to establish a new template for nature-based solutions. One which proves that investments in nature can foster a symbiotic relationship between ecological integrity and human prosperity. 

I had the opportunity to speak with Simón Torras, a founding member of Ponterra along with Celia Francis, Leigh Madeira, CFA, and Andrew Coates. As Head of Project Development Simón was able to share more information about the company, their flagship project, and their pathway towards the future. 

Origins: 

Founded in 2023, Ponterra sprang from a critical realisation: the climate tech industry was saturated with intermediaries focussed on technology and carbon trading, but was lacking a critical component - actual, on the ground projects that restore ecosystems and biodiversity. Ponterra was therefore created to become a developer and operator of nature restoration projects, targeting the vast expanses of degraded agricultural land worldwide. 

Ponterra’s mission focuses on three objectives: enhancing ecosystem biodiversity by reintroducing native species; improving the livelihoods of smallholder farmers; and generating competitive returns for investors through high quality carbon projects. By focusing on these areas, Ponterra seeks to demonstrate the financial viability of investing in nature’s restoration. 

Ponterra’s operational blueprint is as robust as it is nuanced, navigating the complexities of project development and carbon services. From the initial scoping to the final issuance of carbon credits, the company orchestrates the entire project development process. This comprehensive management ensures not only the quantity, but also the quality of the carbon supply, underlining Ponterra’s commitment to excellence and efficacy in restoration projects. Ponterra also extends its expertise beyond its own projects, and offers both technical and financial services to its partners. This collaborative approach amplifies the impact of restoration initiatives, sharing the benefits of carbon projects across a broader spectrum of ecosystems and communities. 

The Azuero Peninsula Project, Panama:

At the heart of Ponterra’s operations is its ambitious 100 year project in Panama’s Azuero Peninsula; a 10,000 hectare private restoration effort aimed at restoring land degraded by agricultural overuse and deforestation from slash-and-burn cattle ranching. This project stands out not only for its scale, but also for its deep engagement with the local community. Farmers have become integral partners in a project that has significantly increased their net income, demonstrating the project’s dual focus on environment and economic regeneration. With the goal to sell carbon credits generated from the project, Ponterra also highlights the economic viability of large-scale restoration efforts. 

Curious about the intricacies involved in executing a nature restoration project as ambitious as the Azuero Peninsula initiative, I turned to Simón for insights. He provided a clear framework by outlining the stages required to bring such a vast undertaking to fruition.

Project Eligibility:

Before embarking on such a project, Ponterra conducts a thorough evaluation of potential sites based on three criteria. Firstly, a preliminary land analysis is performed to assess the physical characteristics to ensure restoration sustainability. Secondly, Ponterra will carry out a measurement of the carbon potential to explore the areas in which restoration efforts would have a significant impact on carbon sequestration. Finally, a cost-benefit analysis is completed to assess the project’s financial sustainability considering the cost of restoration and long-term maintenance. 

Geospatial Analysis:

With a green light on project eligibility, Ponterra uses remote-sensing technology to obtain detailed diagnostics of the site. Their goal is to obtain a detailed map of every property and its geophysical assessment to define a tailored planting design and a preliminary list of  plant species suitable to the area. Following the first year of planting, the project surveys the land to achieve a greater accuracy in information, allowing for more precise monitoring and adjustment of plant strategies. This system enables Ponterra to make informed decisions about what trees to plant and how to evolve the plan for the future.

The tree selection is a collaborative effort between their team of registered foresters and the local farmers, who bring an invaluable knowledge of the land’s history, topography, and native flora and fauna that would have existed before the degradation. This shared approach ensures that each individual land parcel - ranging from 5 ha to beyond 300 ha -  is tailored to the unique environmental conditions of the area, thus promoting biodiversity and ecological resilience. 

Farmer Engagement: 

For Ponterra, meaningful engagement with the smallholder farmers is essential for the success of the Azuero Peninsula project. As a commercial entity, Ponterra accounts for the fact that to scale nature restoration effectively, it must integrate a commercial mindset with the grassroots knowledge of those at the kernel of the project. This understanding has led to the adoption of a partnership approach that values the insights and experiences of local landowners. 

To foster this collaborative relationship, Ponterra uses ‘fair lease agreements’ with landowners. These agreements are designed to avoid any form of neocolonialism by avoiding the outright purchase of the land - a path that could easily be taken by affluent investors. Instead, these agreements allow for joint operation and profit sharing between Ponterra and the landowners, ensuring that both parties are eager to see the project’s success.  

Ponterra’s engagement strategy also addresses the potential concerns surrounding long-term displacement of farmers or the passive use of land by introducing the concept of ecosystem evolution. Recognising the 100 year duration of the project, Ponterra seeks to maintain active involvement from the community by integrating new elements into the project overtime. This approach allows for a dynamic interaction with the land that evolves to meet the needs of both the community and the local biodiversity, all the while maintaining the high quality of the credit-generating project. For example, Ponterra is already developing agroforestry and silvopasture programmes that will run in parallel to the project.

Tree Planting and Management:

With regards to sourcing the trees, Ponterra has strategically developed a tree nursery within the area, aiming to cultivate 1 million saplings by the end of this year. Adopting a strategy of vertical integration, Ponterra’s tree nursery encompasses every stage of the process from sourcing seeds, to planting saplings. With 80% of saplings coming from their nursery, Ponterra has also facilitated the establishment of 20 community nurseries which shall provide the remaining 20%. 

This initiative has been structured akin to a franchise model, as Ponterra assists in setting up the nursery and subsequently purchasing saplings from it. This approach not only expands the project's sapling sources but also makes more significant the involvement of the wider community beyond the agricultural domain. Notably, the creation of employment opportunities for women within these community efforts stands out, with many taking lead roles in nursery operations. Indeed, Simón tells me that more than 60% of the community nurseries are run by women. The financial benefits from these engagements have already had tangible positive impacts, such as enabling a key female community leader to reopen a local school, thereby highlighting Ponterra's role in fostering community development alongside environmental restoration.

The operational phase of planting, typically from July to November, often requires the team to work in remote locations, sometimes necessitating extended stays at the sites to ensure the saplings are properly planted and established. Following this initial planting phase, the project transitions into a crucial maintenance period that spans the first five years. This maintenance is essential for the young plants' survival and growth, with responsibilities directly managed by the landowners as stipulated in their agreements with Ponterra. This arrangement not only ensures the ongoing care and nurturing of the planted areas but also reinforces the sense of ownership and commitment among the local landowners to the project's long-term success.

Going Beyond: 

Ponterra’s approach transcends the mere issuance of carbon credits to underscore the intrinsic value of nature to our economy by affirming that, “our economy depends on our natural resources and ecosystem services.” Recognising that carbon sequestration is merely a starting point, Ponterra underlines that there are broader environmental crises that would exist even if we all reduced our carbon emissions: ocean acidification and a biodiversity crisis among others. Simón encapsulates this in his statement, “carbon is literally just the very tip of the iceberg.” This acknowledgement propels Ponterra’s commitment to generating high quality credits that encompasses local community upliftment and biodiversity enhancement, underscoring the multi-faceted benefits they create to achieve in their projects. 

As a member of VERRA’s Nature Credit pilot program, Ponterra is trying to show the voluntary carbon market how carbon credits generated by restoration projects can yield substantial co-benefits and it is these co-benefits should be taken into consideration when evaluating a project’s quality. Simón’s vision that the ecosystem services of plants and animals should be at the heart of the nature economy is not just rhetoric, but a practical framework within which Ponterra operates. The company paves the way for a new model, whereby investments in nature restoration are seen as essential for our collective future and demonstrating that smart solutions to environmental challenges are within our grasp. 

Ponterra and the Future:

Ponterra’s vision for the future is expansive. Simón is actively fostering partnerships with on-the-ground operators and local NGOs across the globe to amplify the impact and reach of their restoration projects. By enhancing the operational capabilities of these NGOs and introducing private capital, Ponterra aims to leverage their extensive experience and intimate knowledge of local ecosystems. This strategy is about enriching the existing framework of project development, ensuring those on the ground have a central role in the conversation and execution of these initiatives.

At the time of writing, Simón is currently on the ground in Panama. His role, to engage local investors and support local operations, exemplifies Ponterra's hands-on approach to scaling their projects. His focus is on streamlining the processes to onboard farmers and micro-producers, which will prove essential in achieving the project's ambitious goals over time. This groundwork lays the foundation for a sustainable model of nature restoration that balances ecological needs with economic viability and creates autonomy for the community in the project. 

Looking to the future, Simón identifies the entrance of financial buyers seeking significant returns signals from nature-based projects as a pivotal shift in their perception. The transition from viewing such initiatives as mere charitable causes to recognizing them as valuable investments highlights the evolving landscape. Ponterra's efforts demonstrate that investing in the planet's future can yield competitive returns, challenging and changing the narrative around environmental stewardship. This positive outlook reinforces the belief that nature restoration can indeed form a new asset class, attracting serious attention and resources from the global investment community.

Simón’s Positive Outlook and The Exciting Stuff:

Simón’s journey with Ponterra is a testament to the transformative power of aligning environmental restoration with community and capital. The successful development of projects that benefit not just the ecosystem but also local communities and investors marks a significant milestone. It underscores the potential of Ponterra's model to serve as a blueprint for a new asset class that champions environmental prosperity for all stakeholders involved. Simón finds particular excitement in the tangible impacts of their work, like the unanticipated yet positive revival of endangered spider monkeys on one local plot of land, highlighting the real-world benefits of Ponterra's projects.

At the core of Ponterra's success is the spirit of collaboration, a shared dedication to the mission of nature restoration that unites the team with local communities and investors. This collective effort embodies the shift towards optimism in the environmental sector, demonstrating the power of united efforts in making substantial ecological advancements. Simón's experiences underscore the significance of fostering strong connections with those on the ground, especially farmers, whose lives are intertwined with the land they cultivate. These relationships drive the project forward, and also promise wider ecological benefits, including potential positive impacts to local water systems.

Simón advocates for a profound reevaluation of our engagement with the natural world. By highlighting the critical condition of degraded lands and the urgency of addressing climate change from the grassroots, he invites us to reconsider our priorities. Nature, in Simón's eyes, is not just an accessory to our lives but the foundation of our existence and prosperity. At the same time, nature is something we can all be excited about! He calls for a shift from ephemeral trends to a deep, genuine appreciation of nature's value, emphasising the necessity of integrating nature into our economic and business models.

As I reflected on Simón's journey and insights, it's clear that Ponterra's work goes beyond environmental restoration—it's about setting a precedent for how we value and interact with our planet. Through collaboration, innovation, and a commitment to both local and global benefits, Ponterra is charting a path toward a sustainable future that honours the planet and its people. The Ponterra story is a powerful reminder that when we unite behind the cause of nature restoration, the potential for positive change is boundless, promising a legacy of environmental prosperity that can be shared by all.

Learn more about Ponterra for yourself!

If you would like to learn more about Ponterra, you can access their website here - https://www.ponterra.eco/

You can stay up to date with the Azuero Peninsula project on their instagram page here - @ponterra_americas

Feel free to also get in touch with Simón - simon@ponterra.eco

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