natural capital

A growing interest in climate and biodiversity is affecting managers’ approach to timberland investing.

Mirova Sustainable Land Fund 2 will invest in agriculture and forestry projects with objectives of climate change adaptation, mitigation and biodiversity preservation.

The profitability of such carbon projects 'is tied to future expectations of carbon prices. And most forecasts are pretty bullish about those,' says Eric Cooperstrom, managing director for impact investing and natural climate solutions at Manulife.

Kristen Weldon previously held senior positions at BlackRock, Blackstone and Partners Capital.

The Forest Growth and Sustainability fund will generate returns by timberland sales as well as carbon credit generation.

The local authority pension scheme asset manager has launched several ESG and responsible investment public and private market vehicles in the last three years.

Morrison & Co’s Steven Fitzgerald said the investment is consistent with its decarbonisation thematic and ‘fundamentally’ has the characteristics of infrastructure.

The Article 9 fund will invest in projects to restore forests, wetlands and mangroves in developing countries.

Adding Ardian and Just Climate to the mix of managers investing in nature-based solutions helps break down barriers.

Mombak’s Amazon Reforestation Fund has sold 30% of its 10-year projected output at a price point bettered only by the EU’s emissions trading scheme.