Financing forest investments
The volume of forest investments continues to grow worldwide. The scope of investments is broadening to cover both wood products and environmental services. This means new and more demanding requirements for investors.
Indufor provides advice to forest industry companies, institutions and other investors on sources of funding, investment projects and financial plans. We also assist in investment promotion and advise small and medium size local investors and their associations on finance.
Timberland is a growing asset class for institutional and other long-term investors. Until now, the timberland investments have concentrated in the US and to some extent in Europe, Oceania and in few South American countries eg, Brazil and Uruguay. Emerging markets offer new challenging opportunities for timberland investments due to growing demand of wood, fibre and bioenergy. Forest industry companies have been expanding their fibre sourcing in tropical countries significantly over the past decade. In addition, climate change mitigation has raised the importance to expand forest cover for public benefit.
Public forest finance
New and innovative financing mechanisms and instruments as well as public private partnerships are required to make sustainable forest financing an attractive land use option. Indufor is at the forefront of the conceptual development in public forestry finance.
Capturing more benefits from forest and turning them into sustainable revenue flows for forest owners or managers is our objective. Payments for environmental services are one important element in this. Indufor has been a leading adviser in national forest financing strategies. These strategies aim at increasing the sector self-financing and private sector investments in medium to long-term whereas in short-term the capture and efficient use of overseas development assistance and philanthropic support is optimised.
|Contacts:||Jyrki Salmi - Public
Petri Lehtonen - Private
- Public forest financing plans and strategies
- Financing strategies for national forest programs
- Financing studies
- Training related to forest financing
- Payments of ecosystem services
- Finance of forest investments
- Public private partnerships
- Forest valuation and due diligence
- Timberland investments
- Identification of investors