As Sri Lanka looks to leverage innovative financial solutions for both public finance as well as environmental conservation objectives, a key mechanism that stakeholders must become familiar with is ‘Conservations Trust Funds’. These are a type of mechanism that ensures governance and credibility of use of proceeds of finances raised (say, through a blue bond or debt for nature swap), and channels the funding to the intended sources, with due checks and balances. A new publication by CSF helps unpack what Conservations Trusts are, what key features they have, why they are used, and provides some insightful examples of their deployment in other countries around the world. In closing, the primer contains some key messages for Sri Lankan stakeholders to consider.

CTFs are structured as legally independent grant-making institutions that provide sustainable financing for biodiversity conservation designed to act as a bridge between funders/donors and implementing agencies. CTFs require clear sets of objectives governance structures financial structures necessary staff and the ability to operate efficiently and independently of government institutions. CTFs can be structured as trusts and foundations. Financial structures range from endowments and sinking funds to revolving funds and or a combination of investment strategies. CTFs usually operate independent of the national government, and some are fully private entities while others consist of public and private stakeholder representatives rarely with a governmental majority.

Download the Knowledge Primer here