Here is the interview with Matteo Cantoro, Director of Projects (PFP) – Project Finance for Performance, The Nature Conservancy – Gabon. Enjoy your reading!
Most of your projects involve institutional entities, political actors, associations, and foundations. How high is the risk of political conflicts or difficulties in reaching a common agreement? And in case of disagreement, what strategies do you adopt to overcome these situations?
The starting point is always a multi-stakeholder approach. However, for the organizations I work with, the primary interlocutor is the government of the country in which we operate, to align with national sectoral policies. Conflicts often arise, and they are part of a process that can be beneficial, leading to institutional reforms or changes in partnerships. Ultimately, partnership rules are always formalized in contracts or agreements of some sort, which help smooth out differing viewpoints. Risk management is a crucial step in these processes, but often the risks that surprise us are unforeseen. I have been working in Gabon for two years; the national political situation seemed stable before I arrived, but then a military coup took place. Current international events are another example of unexpected risks. In essence, practicing adaptive management is essential.
Some of your projects are based on involving younger generations. Given the demographic decline affecting many donor countries, how do your fundraising strategies and civil society engagement, particularly among young people, align with this reality?
Young people in Africa are both the present and the future. Forty-one percent of Africa’s population is under the age of 15, and the median age is 20. These young people are at the center of everything. That is why they are often included in cooperation programs, accompanied by training and targeted policies. Project funds are partly derived from philanthropy, which we use to attract private funds. From this perspective, these funds always have a significant youth-oriented component. In my role, for example, I work with the national counterpart to manage public funds from the Government of Gabon to finance nature conservation and local development projects. In this sense, The Nature Conservancy (TNC) positions itself as a technical assistance provider to the government.
In the Gabon project, the use of the Gabon Blue Bond allowed you to secure funding through the U.S. International Development Finance Corporation (DFC), helping to improve the bond’s rating. Do you believe that, with the gradual decline in political focus on environmental issues, the possibility of replicating these financial operations for other projects will remain unchanged?
The Blue Bond is a Debt Swap. The Nature Conservancy acquires sovereign debt in exchange for commitments related to marine conservation projects. Despite recent geopolitical uncertainties, these so-called “deals” continue to be used as tools for nature conservation. In Barbados, for example, a Blue Bond transaction has just been completed.
If you had the opportunity to act with complete autonomy in creating a new Project Finance for Permanence (PFP) or a Blue Bond, which area—whether a nation or a natural park—do you consider most at risk from an environmental perspective and thus most in need of these instruments? Which financial tool would you further refine?
PFPs are international initiatives designed to contribute to Target 3 of the Convention on Biodiversity. There are around 20 PFPs globally, and they are accessible to countries that have signed the Montreal Agreements (Gabon, for example, has committed to protecting 30% of its freshwater areas). The challenges related to human development make Africa one of the most suitable contexts for investment mechanisms of this kind. However, the processes behind these instruments require at least a couple of years of country-context analysis, meaning that not all states qualify as suitable targets. The choice is therefore based not only on environmental needs but also on the country’s financial stability and its ability to manage these instruments politically.
How do Nature Bonds work?
Let’s take our example. TNC facilitated the acquisition of part of Gabon’s sovereign debt, amounting to $500 million. The transaction is structured around the interest rate, allowing part of the funds to be transformed into financing for ocean conservation initiatives. The Government of Gabon repays the $500 million debt through agreed repayment plans, and every quarter, it also pays interest, a portion of which is allocated to conservation commitments. Seychelles, Barbados, and Belize have implemented the same mechanism, directing funds toward marine conservation, hence the name Blue Bond. The project sets specific conservation milestones that must be met within strict deadlines. If deadlines are not met, penalties apply to the country.
If you could recommend a book or a film that inspired you to pursue this career, or simply one that would be useful to explore these topics further, what would you suggest?
When I arrived in Gabon, I had rented my 26th apartment. I have lived in 18 different countries… I would say Marco Polo is my idol! 😊 Jokes aside, I recommend all books by Stefano Mancuso.