ARDIAN NATURE BASED SOLUTIONS FUND

A fund focusing on nature-based solutions through forestry projects and sales of carbon credits.

The Fund will invest in nature based solutions projects including reforestation, afforestation and wetlands and mangrove restoration projects. Primarily emerging markets in non-OECD countries will be targeted, with the objective to promote climate resilience, protect nature ecosystems, which are anticipated to deliver biodiversity and social co-benefits. The Fund will contribute to climate adaptation targets by creating nature-based carbon credits with environmental integrity.

The Ardian Averrhoa Nature Based Solutions Fund will promote the implementation of nature-based solutions (NBS: regenerative agriculture, afforestation, reforestation, mangrove and wetland rehabilitations) in various geographical investment areas in Africa, Europe, Asia and Oceania, and Latin and North America.

By investing in forestry assets, the Fund will contribute to both climate change mitigation and adaptation. NBSs play a crucial role in climate mitigation by absorbing carbon dioxide from the atmosphere and acting as carbon sinks, while providing renewable resources that can replace carbon-intensive materials. In addition, through the restoration and conservation of forests, mangroves and degraded natural areas, the Fund will increase carbon sequestration, reduce the frequency and severity of natural disasters while preserving biodiversity. The EIB's involvement alongside other European development finance institutions will catalyse further financing and cooperation at international level, amplifying the positive environmental and socio-economic effects. In addition, the EIB will ensure that the fund implements industry best practice in terms of governance and impact measurement standards.

The Fund will be required to develop an environmental and social policy and establish and maintain the appropriate environmental and social risk management system to identify, assess, manage, monitor and report environmental and social risks and impacts so as to comply with the environmental and social requirements of the Bank. The Fund will be required to identify and assess the environmental and social risks, impacts and opportunities as part of the standard due diligence process for each underlying investment, thereby ensuring that the investments are in compliance with applicable national and EU environmental and social legislation as well as the relevant EIB's Environmental and Social Standards. Details of the Fund's environmental and social due diligence procedures as well as the capacity of the Fund Manager to implement the environmental and social risk management system will be reviewed during appraisal.

The Bank will require the Fund Manager to take all requisite measures to ensure that contracts for implementation of the projects financed by the Fund will be tendered in line with the Bank's Guide to Procurement.