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Forestry investment interest grows
05/05/2010
Investors are increasingly turning to forestry as a sound investment option. This is due to the growing global demand for wood products, the fact that this asset class has weathered the financial crisis better than most, the stable long-term returns it offers and, of course, climate change concerns and the issue of sustainability.
Mark Campanale, a director at Four Elements Capital, commented: “The backdrop for the sector is good. Climate change politics and legislation is tending to favour biomass as a sustainable energy source.”
He went on to explain that pension funds and policy-makers are considering the role of forestry in the investment mix. Initiatives such as the UK’s Prince Charles’ Rainforest Bonds Project are looking at whether long-term bonds could be raised from institutional investors in order to finance rainforest protection.
Alice Chapple, director of sustainable financial markets at Forum for the Future, an environmental think-tank in London, agrees about the potential of forestry investment. She says that in the aftermath of the financial crisis, investors “are recognising that [forestry] is a store of value, there’s a real asset there”.
Marko Katila, a partner at Finnish investment firm Dasos Capital, says that his company “focuses on the word sustainability,” emphasising their efforts to maximise returns from investments using “the delivery of ecosystem services – carbon and other environmental aspects”.
Mark Campanale, a director at Four Elements Capital, commented: “The backdrop for the sector is good. Climate change politics and legislation is tending to favour biomass as a sustainable energy source.”
He went on to explain that pension funds and policy-makers are considering the role of forestry in the investment mix. Initiatives such as the UK’s Prince Charles’ Rainforest Bonds Project are looking at whether long-term bonds could be raised from institutional investors in order to finance rainforest protection.
Alice Chapple, director of sustainable financial markets at Forum for the Future, an environmental think-tank in London, agrees about the potential of forestry investment. She says that in the aftermath of the financial crisis, investors “are recognising that [forestry] is a store of value, there’s a real asset there”.
Marko Katila, a partner at Finnish investment firm Dasos Capital, says that his company “focuses on the word sustainability,” emphasising their efforts to maximise returns from investments using “the delivery of ecosystem services – carbon and other environmental aspects”.
RSS