CSAA Invests $25M in California Wildfire Innovation Fund

CSAA Insurance Group made a $25 million commitment to the California Wildfire Innovation Fund, a climate-solutions strategy to help reduce the severity and frequency of catastrophic wildfire by supporting forest restoration-related economic development.

The fund was developed by CSAA Insurance Group in partnership with Blue Forest, the non-profit behind the Forest Resilience Bond, which deploys private capital to finance forest restoration projects for wildfire prevention.

The California Wildfire Innovation Fund targets emerging investment opportunities in forest restoration, wood utilization and wildfire mitigation. Emphasis is placed on industries and projects that add system capacity, create value for forest restoration byproducts, and unlock carbon offset revenue through carbon storage and sequestration.

The California Wildfire Innovation Fund is expected to deliver numerous environmental, economic and social benefits, including:

• Processing forest restoration byproducts to reduce wildfire-related carbon emissions, provide long-term carbon storage and help protect watersheds.
• Forest management to improve fire-fighting access and capabilities while enhancing safe evacuation corridors.
• Creating sustainable, reliable employment that prioritizes worker safety and well-being in remote, rural areas that may have high rates of unemployment and offer limited economic opportunity.
• Studies have shown that exposure to wildfire smoke causes respiratory and cardiac-related illnesses. Investing in solutions that reduce wildfire risk improves health among vulnerable populations.

(AP Photo/Noah Berger)