In Conversation with George Kelly

David was recently joined by George Kelly, the Chief Executive of Earth Recovery Partners in the United States, on the ‘How to Avoid Moving to Mars’ podcast.

This episode was especially unique, as the pair have known each other for over 20 years, and David credits George’s expertise as invaluable to his career. 

George has been a dedicated advocate for mitigation banking for many years, ensuring proper land use for economic and environmental benefits and making nature economically visible. Below, George discusses his passion for nature, his career, and mitigation banking in the US.

Walk us through your career in the land-based sector, from your beginnings to the companies you've developed over time.

My journey started with a Master's in Environmental Law, which led to work in an environmental law department. Here, I did permit work relative to natural assets and a lot of cleanup following the Superfund law, which came in place in 1980. 

Seeing the potential for market-based solutions in environmental conservation, I co-founded Environmental Banc and Exchange in the late 1990s. 

Environmental Banc and Exchange aimed to shift the view of the environment from a cost centre to an asset, focussing on Clean Water Act mitigation. Over the years, we evolved to become a leading ecological offset provider, which helped us build our name as a third-party deliverer of nature restoration and mitigation banking.

By 2014, Environmental Banc and Exchange was in seven states. I was the president of the National Mitigation Association, and I spearheaded the effort to drive the federal mitigation rules to create a level playing field for all forms of mitigation, which was transformative. 

Then, we merged with Resource Environmental Solutions (RES) in Houston. We were about 100 people and in around 15 states. When I left, there were about 1,000 people in over 20 states in the US, and we were the largest ecological offset provider in the world for biodiversity and many more types of mitigation. 

Now, I've gone back to my roots, and at Earth Recovery Partners, my partner and I are supporting young enterprises and projects in the environmental market and nature-based solution space. 

Did your interest in nature start early in life?

Absolutely. My mother was a significant influence, she was deeply involved in environmental advocacy since the 1960s. She drove the National Affairs and Legislation Committee of the Garden Club of America. They evolved into one of the most prominent advocacy groups in Washington D.C.

I pursued environmental studies in college and law school, driven by her passion and commitment to conservation. I’m proud of her involvement in numerous causes, including Scenic America. She was also the first founder of the Nature Conservancy in Maryland. 

How does mitigation banking work in the US?

Mitigation banking is the preferred approach of restoration in the USA. It came about to allow mitigation to be carried out in advance and to restore nature in a way that is of a higher integrity and a greater level of transparency. 

Mitigation banking involves offsetting environmental impacts through restoration or preservation projects. It also includes creating ecological assets in advance and ensuring no net loss of resources. The process is made up of 12 basic steps, which contain aspects such as site control, baseline analysis, and long-term stewardship to achieve environmental goals.

How is private finance contributing to ecological restoration in the US?

Private finance plays a significant role, especially in mitigation banking, which addresses wetlands, species, and stream mitigation, amounting to about three billion dollars annually. This is entirely driven by the private sector. 

Additionally, green bonds, public-private partnerships, and ESG investments are driving restoration efforts. These models leverage private capital to fund restoration projects, ensuring sustainable environmental outcomes.

Where do you see the growth potential in environmental markets?

The evolution of offset markets, like biodiversity net gain (BNG) initiatives, present significant opportunities globally. The UK’s BNG model is a good example of this. 

There is also a burgeoning market for water. Nutrient offsetting ensures that water quality is protected, while water rights drive developers to make up for the water that they will be using in their projects. 

Models like green bonds and public-private partnerships are gaining traction, particularly in areas like stormwater management and carbon offsetting. Integrating natural capital accounting and exploring new business models can further drive growth in the environmental sector.

Is there a particular individual or company in the environmental field that you admire?

I deeply admire conservation pioneers. For example, Teddy Roosevelt who said, “the nation behaves well if it treats its natural resources as assets” and ‌John Muir, ‘The Father of the National Parks’ whose work laid the foundation for the conservation movement. 

More recent individuals I admire include Professor Sir Partha Dasgupta, who wrote ‘The Economics of Biodiversity’ report, and Ian McHarg, who wrote Design with Nature. 

Any final thoughts on the environmental sector or your work that you'd like to share?

Recognising the value of nature is essential for driving meaningful change. 

Mitigation banking is just one step towards this goal, but we must move beyond offsets and embrace models that intrinsically value nature. Corporate finance and voluntary markets offer promising avenues for financing conservation efforts. Ultimately, integrating environmental considerations into business practices is key to achieving long-term sustainability.