IDB Invest, a member of the Inter-American Development Bank (IDB) Group, grants a loan to Pinosa SRL de CV and Resinas Sintéticas SA de CV, two leading companies in the resins industry in Mexico. The funds will be used to establish and maintain forest plantations of 1,250 hectares of native resin pine species on ejidal lands, a project implemented by Ejido Verde SAPI de CV.
Ejido Verde promotes the adaptation and mitigation to climate change and expects to capture 25,375 tons of CO2e per year. Its business model combines commercial-scale reforestation of degraded lands with the creation of a recurring source of income for indigenous communities and ejidos that work on communal lands. Of the 24,000 tons of pine resin produced annually in Mexico, more than 90 percent come from the State of Michoacán. Ejido Verde expects to escalate this intervention, improving the supply of raw materials from Pinosa and Resinas, and strengthening commercial relations with the indigenous communities and ejidos that work the communal lands.
The financing, which includes funds from the IDB and the Global Environment Facility (GEF), offers the tenors needed to allow for the newly planted pine trees to produce resin. The project is designed to test the financial sustainability of its innovative business model.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About Pinosa, S. de R.L. de C.V.
Pinosa is a resinera founded in 1928 dedicated to the processing of crude pine resin from which rosin (pitch) and turpentine are obtained, which are basic raw materials for the synthetic resin and pine oil industry. Pinosa buys the raw pine resin at a fair price to independent resin producers, as well as avoiding the deforestation of natural forests.
About Resinas Sintéticas, S.A. de C.V.
Resinas Sintéticas, founded in 1951, manufactures rosin derivatives, supplying its products to national and international companies in the adhesives, paints and food industry.
About Ejido Verde S.A.P.I de C.V.
Ejido Verde is a productive alliance formed in 2009 to generate prosperity in Indigenous Communities and forest ejidos in Michoacán through the establishment of commercial forest plantations whose main purpose is the use of pine resin. As of 2018, more than 3,000 hectares of forest plantations have been established in 11 agricultural centers, generating a source of income for more than 1,200 people.