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Rise of carbon credit forestry investments
12/06/2009
Carbon credit forestry investment schemes are offering firms all over the world the chance to earn carbon credits and make a profit by investing in timberland.
Firms that invest in these schemes receive carbon credits, which can be used to allow them to emit a certain amount of carbon dioxide, thus creating a market for carbon reduction. Such schemes have been seen as an intrinsic part of achieving the goals set out in the Kyoto Protocol, which requires developed countries to reduce their emissions over the coming years. The protocol’s goals are to reduce missions by 5.2% between 2008 and 2012.
As a result of the growing demand for carbon offsetting opportunities, a large number of firms have started to offer carbon credit forestry investment schemes.
The schemes are attractive to investors and to forest owners who are able to receive an income from their forest as it grows rather than just after harvesting. Investors are attracted to the carbon credit forestry because the carbon market is a fast expanding one. Carbon analysts at New Carbon Finance claim the market will grow by 27% this year alone to the value of $150 billion.
Investors who have concerns about portfolio diversity will also be drawn to such schemes as forestry is a stable alternative asset class with proven profitability.
Firms that invest in these schemes receive carbon credits, which can be used to allow them to emit a certain amount of carbon dioxide, thus creating a market for carbon reduction. Such schemes have been seen as an intrinsic part of achieving the goals set out in the Kyoto Protocol, which requires developed countries to reduce their emissions over the coming years. The protocol’s goals are to reduce missions by 5.2% between 2008 and 2012.
As a result of the growing demand for carbon offsetting opportunities, a large number of firms have started to offer carbon credit forestry investment schemes.
The schemes are attractive to investors and to forest owners who are able to receive an income from their forest as it grows rather than just after harvesting. Investors are attracted to the carbon credit forestry because the carbon market is a fast expanding one. Carbon analysts at New Carbon Finance claim the market will grow by 27% this year alone to the value of $150 billion.
Investors who have concerns about portfolio diversity will also be drawn to such schemes as forestry is a stable alternative asset class with proven profitability.
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