In discussions with newcomers considering investments in timberland or the publicly traded timber REITs, I frequently find that there is substantial misunderstandings about what a TIMO is and what the TIMO role is in the investment community.
The pace of timberland transactions is still pretty slow but they are occurring (about 500,000 acres since my update last fall) and prices do not appear to have dropped below those of late last year. I think the 10% - 15% decline estimate (from the peak) is still pretty solid.
Forests cover between 25 and 30 percent of the earth’s land surface. They help to maintain the fertility of the soil, protect watersheds, and reduce the risk of natural disasters such as floods and landslides.
About 350 million people worldwide depend on forest resources for their livelihood—of those, 50 million (especially indigenous communities) are wholly dependent on forests.
About 65% of the total primary energy supply in Africa comes from biomass (30% in South Asia, 15% in Latin America and East Asia).
Investor interest in forestry is building, driven by climate change concerns, shifting and growing markets for forestry products – and the good, old-fashioned portfolio diversification benefits of an asset class which weathered the financial crisis much better than most and which offers stable long-term returns. But, argue sustainable finance experts, barriers to monetizing the environmental attributes of the sector remain high – both retarding investment but also generating opportunities for early movers.
WBCSD: Sustainable Forest Finance Toolkit Now Available
Geneva, 22 February 2010 - PricewaterhouseCoopers (PwC) and the World Business Council for Sustainable Development (WBCSD) have launched the Sustainable Forest Finance Toolkit, which aims to support the finance sector in