Sunday June 5 was World Environment Day and the UN marked this occasion by calling for international investors to plough a further $40 billion into forestry investments in order to help cut deforestation rates by 50 per cent by 2030. This is a cause that alternative and ethical investment advocacy group, AAA, has been behind for some time.
AAA said that the added support for forestry investment from the UN will greatly benefit the market by boosting awareness of the way in which forestry investment can help the environment. The UN Environment Programme (UNEP) said that if forestry investment rises by up to two thirds more than the current levels, tree planting could increase by 140 per cent by 2050.
There has been a range of new forestry investment opportunities arising over the past few years, many of which have been located in emerging economies like Brazil – where plantations run by firms like Greenwood Management have helped to encourage foreign investment in the country and provide alternative timbers to those produced through deforestation.
UNEP’s Deputy Executive Director, Tim Kastens, said, “Forests are a critical link in the transition to a green economy. They generate income, provide employment and nutrition, reduce vulnerability including energy and security.”
AAA’s analysis partner Anthony Johnson, said, “UNEP makes important points about the importance of ensuring developing countries can strengthen their economies through investing in forestry and attracting foreign investment in their forestry industry. This way, they can build a sustainable model that provides local employment opportunities and strengthens economies without the need for deforestation – which could lead to the loss of valuable forest land forever.”
To further encourage forestry investment, the UN has declared 2011 as the 'International Year of the Forests.' It has also issued a report entitled ‘Forests in a Green Economy,’ which claims that forestry investment will not just benefit emerging economies. UNEP Executive Director, Achim Steiner, explained in the report, “The Green Economy initiative has identified forestry as one of the ten central sectors capable of propelling a transition to a low carbon, resource efficient, employment-generating future if backed by investment and forward-looking policies.”
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320