The Real Eco State: democratizing investment in Patagonias conservation.
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The Real Eco State: La startup que busca democratizar la inversión en conservación de la Patagonia, Gentileza

The Real Eco State: In search of democratizing investment in Patagonia conservation

The Real Eco State aims to democratize investment in conservation, by selling land from 5 hectares, targeting long-term investment, with the conservation of large tracts of land and all their biodiversity.

The Real Eco State, was established in 2017, with the purpose of protecting the Chilean Patagonia through the sale of lands for its conservation, being the first national company to perpetually use the Real Right of Conservation (DRC) in the commercialization of their lands. 

This is a legal tool that allows the protection of various natural attributes, such as an ecosystem or endangered species, by defining permitted and restricted uses of the land, such as the prohibition of industrial uses, logging, construction of perimeter fences, entry of domestic animals, campfires, accumulation of garbage or the modification of watercourses, among others. In this way, it promotes the recovery of natural ecosystems to address the climate crisis.

Carbon Monitoring Tower. Gentileza

This is how Entreprenerd explains it to Felipe Escalona, CEO of The Real Eco State, "We are able to measure in real time the ecosystemic respiration of a forest, a wetland, and any ecosystem, ten times per second. This implies that we can calculate carbon sequestration, even the sequestration of other greenhouse gases or other variations, such as water vapor for example, in real time, and that allows generating a completely traceable, verifiable, credible and accurate system, to the second, regarding the measurement of carbon bonds or any other type of ecosystem service". 


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A JOURNEY THAT CHANGES LIFE

It was in 2016 when Felipe Escalona, who is a lawyer by profession, but who has developed much of his professional career in real estate; had planned a trip to Torres del Paine, which completely changed his life. It was there, where he experienced a situation that almost ended his life. A extreme experience that made him reconsider even the meaning of his own existence up to that moment, and he asked himself: "If my life ends today, what did I really contribute to change the world?".


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After this experience, and a tour through Puerto Varas which confirmed the large number of rural subdivisions built without homes or basic services, generating habitation expectations among people that were not met; and even worse, they were destroying entire ecosystems, affecting flora, fauna, fungi, and entire landscapes, negatively altering all the ecosystems they reached.

Felipe Escalona, CEO of The Real Eco State. Gentileza

The worst part is that few people who bought those lands actually built or even visited them, because maintaining a second home is too costly for a family in Chile. But the damage was already done. And all because selling lands in a market economy is good business.

There he found the key: to take care of nature in such a way that it would be profitable and attractive as a business.

Taking advantage of his knowledge of the real estate market, he developed a concept that was not seeking habitability, but areas that were legally protected, just as Douglas Tompkins had done by creating the Pumalín Park. But he gave a twist to the figure: instead of creating a large Conservation Park, they would be smaller lots, from a minimum of 5 hectares. With this, he would put within the reach of many more Chileans the possibility of joining the cause of conservation and democratizing a figure that until then had been limited to great magnates with a philanthropic vocation.

SUSTAINABLE MODEL

With its sustainable model, The Real Eco State aims to democratize investment in conservation, through the sale of lands starting from 5 hectares, aiming for a long-term investment, with the conservation of large swathes of land and all its biodiversity. Thus, it is not necessary to possess vast economic resources or create foundations to contribute to the preservation of our untouched natural areas.

The three key axes of the model's development are sustainable investment, conservation, and local impact with the aim of contributing to the productive sector of communities. To date, 11 private conservation park projects have been executed.

When an investor purchases land at The Real Eco State, they are perpetually protecting between 98% and 100% of the respective surface. The entity responsible for ensuring the fulfillment of the DRC is the non-profit foundation Wildland Ecobenefit Conservancy (WEConserv), focused on preserving the natural and cultural heritage of private lands in the long term.

A DIFFICULT PATH

According to Escalona in EntrepreNerd, "The most difficult part of a project that aims to trade ecosystem services based on conservation and create a model in which the protection of nature generates income is confronting the most extreme of environmental organizations. Dealing with the 'haters,' those who mistrust and believe that making a profit or aiming to generate prosperity from this is bad, is a challenge."

He adds that, "many times we've had to face situations where we are 'called out' and bothered because people are suspicious. But the purpose, we believe, is the most important thing: not losing sight of the goal, the objective, and we do not allow ourselves to be cowed by threats or situations like those."

WHO INVESTS IN CONSERVATION?

According to The Real Eco State, those interested in investing in conservation are investors who are encouraged by the possibility of contributing to the protection of nature, but at the same time obtain an average annual return of 20%.

Considering that more than 20% of sales last year came from North American and European citizens, coupled with the growing demand from foreigners to acquire lands in Patagonia for conservation, The Real Eco State opened its first office in the United States in 2022, in New York City. "The internationalization of the company will help overcome difficulties encountered by potential buyers from other countries with Chilean legal requirements", say representatives from The Real Eco State.

"Our plan is to have protected at least 1,000,000 hectares in Chilean Patagonia. One million hectares of native forest that generate income for owners and communities," explained Felipe Escalona, CEO of The Real Eco State.

He added that, "We think we are going to generate at least $20 million per year for the communities, also based on this, and roughly ten times more for owners and technology companies associated with conservation, with the protection of land, with the protection of biodiversity, with study and science."

NEUTRAL CARBON GOAL

According to Escalona, the goal for 2029-2030 is associated with major objectives of protection, conservation, and changing paradigms around nature and its conservation.

Furthermore, the company indicates that in line with our country's goal to achieve carbon neutrality by 2050, The Real Eco State has obtained the CarbonNeutral® certification, the most recognized seal in the world in this matter.

For this purpose, it calculated its greenhouse gas emissions (GHG) with the aim of neutralizing them through the purchase of carbon credits for the protection of the Valdivian coastal reserve and the conservation of the Amazon rainforest. In 2021, its operations generated 59.5 tons of CO2, which were measured by the international consultancy CarbonNeutral® S.A. of Climate Impact Partners, the company reported.