Australia’s Macquarie Group has announced that it has raised
A$25 million for its range of new forest carbon projects in developing
countries, which it is undertaking with the World Bank and Global Forest
Partners LP.
Forestry Research Associates (FRA), a research and advisory consultancy, has
welcomed the news of the new carbon projects as another major move towards
helping reduce deforestation in the world’s poorer nations.
The funding is part of a wider UN-backed carbon forestry deal, called REDD,
that provides financial incentives for developing countries that take measures
to preserve their forests in order to reduce the amount of carbon emitted
through deforestation, explained FRA.
Macquarie Group’s BioCarbon Group has agreed to terms with the International
Forest Corp. and US-based forestry investment firm, Global Forest Partners, to
provide the extra funding, which will be invested in further REDD projects in
developing nations. These projects are expected to include partnerships with
conservation group Fauna & Flora based in Indonesia. BioCarbon is the
financial vehicles for these projects.
Brer Adams, the Macquarie Global Investments Associate Director, said he has
confidence in the potential benefits the funding will have: "We are very
confident we have raised sufficient capital here for us to succeed to have a
significant footprint of forest carbon projects.” He added that it is also
looking at other nations including those in Southeast Asia, Africa and South
America to further extend its carbon forestry projects.
“This is very positive news for the carbon forestry market around the world,”
explained Peter Collins, an analyst at FRA. He added, “International investment
in forestry projects is essential in order for a successful carbon market to be
established. Carbon forestry allows us to ensure that people living in
developing countries can benefit from their forests while they are standing,
and not just when they are chopped down and sold off. In fact, with the help of
carbon forestry initiatives, like the ones funded by Macquarie, we can
safeguard the future of the world's forests to provide sustainable income for
generations to come.”
FRA added that projects in Brazil and other emerging economies, run by firms
like Greenwood Management, attract foreign investment in managed sustainable
forestry, which is helping to reduce deforestation and illegal logging in
Brazil and elsewhere.
Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
206-316-8394
