- RenewWest is an environmental asset developer company that is demonstrating that scientifically rigorous strategies are able to create economic value while mitigating climate change. This is the story behind the company.
RenewWest is an environmental asset developer company that is demonstrating that scientifically rigorous strategies are able to create economic value while mitigating climate change. The company develops projects in the United States, Central and South America, and Oceania and works across multiple ecosystems like temperate forests, rainforests, wetlands and mangroves, peatlands, and degraded rangelands. And since 2018, RenewWest has been developing nature-based projects that will deliver high-quality and independently verified carbon credits while increasing biodiversity, returning value to investors, and improving economic outcomes for frontline communities.
To learn more about the company Pulse 2.0 interviewed RenewWest CEO, John Cleland.
John Cleland’s Background
Cleland is a Chicago native who spent the majority of his professional career working in commodities at the Chicago Board of Trade. And Cleland had started out trading and eventually launched his own brokerage where he raised capital for commodity funds and provided execution services. During this time, Cleland was exposed to the development of the Chicago Climate Exchange and became very excited at the possibilities of what these markets could offer.
The Idea For The Company
“RenewWest was initially created to address the issue of reforestation in the Western United States. The goal was to leverage the growing carbon market to finance restoration in areas that had suffered a catastrophic loss due to fire. While working on these projects, we continued to rapidly encounter other ecosystems that could be worked on and help diversify our portfolio of project types,” said Cleland. “The company has since evolved into an environmental asset manager, working to optimize financial and environmental outcomes across multiple ecosystems. We generally focus on nature-based outcomes like the avoided conversion of forests (i.e. keeping intact forests standing), conservation and restoration of mangroves and wetlands, and rehabilitating the degradation of pasturelands.”
As an environmental asset manager, what RenewWest does is evaluate different properties to determine what financial and environmental values can be optimized and produced by deploying specific interventions such as rotational grazing, agroforestry, conservation easements, or afforestation strategies. And the company mostly looks at them for carbon credit values, but they are also examining these projects for what other economic and biodiversity aspects they have for the local communities. At the core, RenewWest’s skills are technical expertise and relationship building. The company’s intention is to work with landowners of all types and provide world-class service and understanding of how to add the most value to an environmental asset.
Launching Of RenewWest
Initially, RenewWest sought capital to launch a fund to address reforestation. This initial Fund would finance the reforestation of 3 to 5 projects at a minimum of 5,000 acres each. And assuming success, the company would launch a subsequent fund and continue to address the massive gap in existing funding to support the need for reforestation in the United States.
“It was an incredibly difficult task for many reasons, and there was minimal proof this type of project could be completed in the geography of our focus,” Cleland added. “During that pursuit, I continued to encounter several different types of projects that had real chances of success and the ability to make a real impact. It was this transition that I believe gave RenewWest the ability to grow. “
RenewWest has evolved in many ways. The company initially sought to provide funding to projects but has since evolved into end-to-end project management due to the level of detail and skill needed to manage nature-based projects. Plus the company has also become more technically sophisticated.
“Early on, we were hustling. Now we have 2 PhDs, several distinguished team members who have written and worked on nature-based methodologies, and technical capabilities like remote sensing that allow us to move much faster on new projects,” Cleland continued.
Company Milestones
What have been some of the company’s biggest milestones?
“I think our biggest milestone so far has been our Seed Round funding. It has allowed us to bring on some amazing people who are passionate about the work we’re doing and believe in the vision or our company. Our funders are also incredible partners,” Cleland answered. “They didn’t just provide capital. They’re also providing opportunities for us to work together on projects in multiple ways. Beyond that, for me personally, it has been the addition of my two partners Brent McMinn (CIO) and Adrian Reif (COO). The capital raise would have been impossible without them. They both understand what it means to work as a team and do what’s best for the company. I have never been more energized to go to work than when I do with these guys.”
Success Stories
One of the biggest success stories, as it pertains to customers, would be the Collins-Modoc reforestation project located in Modoc County, California. And in the Spring of 2022, the company completed with Collins the reforestation of nearly 10,000 acres and with over 2 million trees. The company is continuing to work with the Collins Pine Company to address other properties which have also been affected by a recent fire.
“In addition, there are smaller successes that are more personal. For example, when we spent time in Papua New Guinea, meeting with clans who shared their personal stories and struggles with us, and how they were really excited to potentially earn more income to improve their local schools by preserving their forests was really humbling,” Cleland revealed. “The same in Peru, where we met with very hardworking ranching families who only want better lives for their families and children. They were so excited about better management practices for the land and reintroducing trees because they never meant to degrade the land. In Yucatan, Mexico, we are helping a landowner who is so excited about conserving mangroves and implementing this project for the benefit of his community. He is truly a pioneering voice and we get to play a small part in that. Each place we go has small stories from real land stewards that are huge successes for us and the mission we are on.”
Total Addressable Market (TAM)
Cleland told me that the global demand for high-quality carbon offsets is expected to be $150 billion by 2030 and $800 billion by 2050. And this is only a small percentage of the market for ecosystem services that are emerging to keep our natural ecosystems intact.
“Consider that 50% of the global economy relies on nature. At the current rate of loss, there is a significant market for conserving and restoring these critical ecosystems,” Cleland explained.
Distinguished From The Competition
What distinguishes RenewWest from its competition?
“While mission-driven, we focus on operational excellence. We focus on moving projects from beginning to end as efficiently and effectively as possible. RenewWest is really built on trust and relationships, not transactions,” Cleland responded. “Our competitors are great, but they are transaction focused. When you work with land stewards around the world, they want real partners–the financials are only a piece of the puzzle, the rest is trust.”
Cleland also mentioned that they always seek to listen first. And when they partner with land stewards, they ask a lot of questions and see what we can learn before we start making recommendations.
Future Company Goals
As RenewWest accelerates the repair of degraded ecosystems, the company aims to:
1.) Generate 1 gigaton (1 billion tonnes) of carbon removals or abatements from our projects’ activities over the course of their lifetime.
2.) Unlock $10 billion for nature and ecosystem services, and help this money flow into high-integrity, high-impact projects.
3.) Accelerate progress toward the Sustainable Development Goals (SDGs) through our projects’ activities.
