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Canadian timber construction initiative attracts support from AAA
A new scheme to encourage construction with timber in Canada has been welcomed by AAA, which claims the scheme could boost returns for forestry investors.
By: Anthony Johnson
The Atlantic WoodWORKS! Initiative is being launched by the Canadian government, in conjunction with several provinces, including Nova Scotia, Labrador and Newfoundland.
The campaign is intended to extend the already successful WoodWORKS! Scheme to the Atlantic region and could help to bring more cash and investment into the Atlantic region’s forestry industry, claims AAA, which advocates alternative investments, including forestry investment.
Under the Business Development Program, the initiative is receiving CA$500,000 over a two-year period by way of support from the Atlantic Canada Opportunities Agency.
“This initiative, if successful, will provide a major boost for the forestry industry of the region, with more commercial and public buildings using solid timber in construction projects helping to increase the value of thee timber products”, stated AAA’s analysis partner, Anthony Johnson.
AAA also support the environmental benefits of these kinds of projects, as they help to encourage tree planting and reforestation, which adds to the carbon sequestration properties of a country. Encouraging sustainable forestry management methods is also vital for the safeguarding of forestry industries for generations to come, added Johnson.
Among other schemes, AAA backs forestry plantation schemes in Canada, including the one run by Greenwood Management, a group based in Denmark. The scheme enables investors to buy up sections of land which is then planted with quick-growing sustainable timber stock, which grows in value over a relatively short amount of time. At maturity, the timber is sold off and cash is returned to investors.
This kind of alternative asset class is becoming increasingly popular among those who want to avoid putting their cash in stocks and shares in light of the recent volatility of the equity markets.
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