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The Enabling Environment & REDD+
Forest bonds deliver improved access to capital by leveraging the relatively predictable cash flows that sustainable forestry and forest related activities are capable of generating. In many countries governments are uniquely positioned to support the... -
Access to Forest Assets
Alongside direct investment in ‘physical’ forest assets, such as forests and processing capacity, investors can allocate capital to ‘financial’ forest assets offering indirect exposure to the asset class. The global investment... -
Managing Risk
Forest management involves a degree of political, commercial and market risk wherever forests are located, and a variety of structural and third party approaches have evolved to address this. Political risk includes failure to implement or uphold existing... -
Forest Cash Flows
Determining forest cash flows is fundamental in assessing the quality of physical or financial forest assets. Success depends on systematic gathering and interpretation of all relevant financial, environmental, social and governance data related to underlying... -
Investor Demand
At present institutional investors including pension funds and insurance companies own roughly 10% of the global forest investment universe. Historically capital has been allocated as long term equity (‘patient capital’) through specialist... -
Market Activity
Forest bonds will leverage a range of new market-based incentives, demand side stimuli and risk mitigation mechanisms emerging to support sustainable forestry. The supporting framework for forest bonds is evolving rapidly; we anticipate the first structures...
Long term capital for sustainable forest ecosystemsâ„¢