Jakarta—Sydney-based natural capital investment New Forests has raised USD300 million in partnership with Oji Holdings, a global paper and packaging manufacturer, Addleshaw Goddard said in a statement.
The Future Forest Innovations Fund is a green capital fund domiciled in Singapore. The company said up to 60% of the funds may be invested in Southeast Asia.
The UK-based private fund firm Addleshaw said in a statement dated April 1 that the Future Forest Innovations Fund, to be based in Singapore, is designed to be able to accept further investment from institutional investors.
The above funds will be invested in sustainable forestry assets across Southeast Asia, including Indonesia, North America, Latin America, and Africa. Initially, they will target net sequestration of 1.5 million tonnes of CO₂ equivalent annually by 2030.
Jan Gruter, the Head of the UK Private Funds team at Addleshaw Goddard, commented that the company is proud to support New Forests and Oji Holdings in establishing this green capital fund.
“The Future Forest Innovations Fund represents a forward-looking approach to natural capital investment, and we are pleased to play a role in establishing a vehicle that draws on New Forests’ two decades of experience in sustainable forestry fund management,” Gruter said.
“Momentum continues to build among corporates looking to invest in forestry and nature-based solutions. Through this fund, Oji will significantly expand its sustainable forestry footprint and accelerate progress toward its 2030 decarbonisation objectives,” Gruter added.
Funds like these show how industry can work hand-in-hand with natural capital managers to deliver real carbon outcomes and support biodiversity and community resilience.
Future Forests said the alignment of private capital with climate, biodiversity, and community outcomes reflects innovation in green investment projects in Southeast Asia.
Sustainable forest
Future Forests Fund said on its website in late March that it is seeking to acquire the rights to sustainably manage a forest concession located in Kalimantan.
It said the concession includes areas that have been logged. The remaining forests vary from highly degraded to primary forests.
It said the lowland Dipterocarp forests of the area form an extremely biodiverse ecosystem on the island and are amongst the most threatened forests in the world due to their environmental fragility and the value of their timber.
The Future Forests Fund said it intends to implement a comprehensive set of activities to reforest the most highly degraded areas of the concession with mixed native species, enrich and restore previously logged areas, and protect and preserve any remaining primary forests.
In related development, the company earlier inked a deal to partner with the Tropical Forest Foundation of Indonesia (TFF) to promote the application of best practices in sustainable forest management.
Their partnership focuses on restoring natural forests, promoting the economic well-being of indigenous communities, and enhancing biodiversity.
The collaboration’s goal is to improve forest management to generate tangible climate benefits, support local communities, and create or protect the habitats of endangered species, the statement said.
The Future Forests Fund said it is “excited” to integrate the production and use of biochar into its work as part of its first project in Indonesia, using innovative techniques to support sustainable land management. This initiative is a key step toward a sustainable and biodiverse future. (Roffie Kurniawan)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
