EcoForests Asset Management launches carbon capture vertical

21/04/2021 - 3:49pm
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ESG & Responsible Investing
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Boutique forestry investment management company EcoForests Asset Management has added a new carbon capture vertical to its portfolio. The EcoForests carbon capture certification process has already begun, and sales of certified carbon capture assets are expected to take place by Q4 this year.

Carbon capture has increased in popularity over the past decade, as corporations and countries seek to achieve net zero emissions by offsetting carbon dioxide emissions with investments sequestering CO2. 

Forestry has emerged as a leading solution for corporations seeking to achieve this sustainable objective, as it naturally and efficiently sequesters carbon emissions over time. Natural forest regrowth has the potential to sequester up to 23 per cent of global CO2 emissions, or 8.9 billion metric tonnes of CO2 – in addition to the carbon sequestration of existing forests, which currently absorb approximately 30 per cent of CO2 emissions annually. 

In addition, forestlands positively contribute to the global environment – by increasing animal and plant biodiversity, watershed protection, and preventing soil erosion. As a result, companies seeking to align carbon capture commitments with broader environmental sustainability goals are finding forestlands an attractive solution.

“I am thrilled to add this offering to the EcoForests product portfolio,” says EcoForests CEO Michael Ackerman. “Investors and companies can now purchase a direct stake in carbon capturing forests and reap the benefits of their positive environmental, financial and social impact – rather than purchasing credits on the carbon credit market.” 

Prior to offering carbon capture assets, EcoForests earned revenues at the timber sale stage in the forest harvesting process. Carbon capture offers the opportunity to monetise a time in the forest management cycle that was previously not a driving force of the business. This means tree-planting and the natural growth of forests are now profit generating for the business.