Several investment decisions fail because feedstock risk was ignored at the start. Transparent sourcing is a core part of project quality.

Key checks before financing or commercial deals
• Clear description of feedstock type, origin and volume.
• Basic proof of legal sourcing and land-use conditions.
• A traceability plan that matches project scale.
• A realistic estimate of annual residue supply.
• A risk assessment with practical mitigation steps.

Why investors care
• Weak feedstock governance adds reputational risk.
• Upstream emissions can reverse expected removals.
• Inconsistent documentation slows due diligence.
• Certification bodies may reject projects with unclear feedstock.

Red flags
• Missing documents.
• No clarity on forest origin.
• Residue volumes that exceed local supply.
• Work in high-risk regions without added controls.

Practical guidance
• Ask for documentation before signing term sheets.
• Support developers in building simple traceability systems.
• Request yearly updates if conditions change.

Better sourcing improves bankability. It protects long-term revenue and reduces negotiation friction.