Forest Invest

Today, I’m joined by Dr. Elias Ayrey, co-founder and chief science officer, and Mary Ignatiadis, forest economics and policy expert at Renoster. In this conversation, we view forest carbon investing through the lens of change theory. We talk about the long-term opportunity cost of forest carbon projects, and what investors need to consider to ensure that these projects are truly a solution for integrated forest landscape improvement. We discuss the essential distinctions between objective setting in markets like the US versus the Global South, and considerations for large, institutionally owned land versus smallholder-owned land. We tackle the controversy around generating carbon credits from commercial plantation forestry head-on. And, of course, we learn about Renoster and its essential work in helping investors and carbon credit buyers do due diligence on the quality of forest carbon projects.We can't ignore all the economic evidence that creating demand for wood products results in more forest investment and therefore more carbon storage, and until carbon prices increase dramatically, could be a better way to ensure long term carbon storage than carbon credits alone.It's worth considering if an investor is looking specifically at the forest base and at nature-based climate solutions that you should really think about whether having multiple different kinds of forest investments might contribute to a greater overall impact.ResourcesRenosterLEAF CoalitionSymbiosis CoalitionTrees: American chestnut (Castanea dentata) & Eastern Hemlock (Tsuga canadensis)Production teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesTimestamps01:44Elias’ professional background & Renoster03:05Mary’s professional background & Renoster05:34Long term impacts should investors consider? Understand complete theory of change09:13But, what is the reality?11:28Investor coalitions13:44How would KPIs differ depending on the context, including small hold participants? (US market)16:48And any differences between the Global North and South?19:43Different KPIs in these regions?22:36Need both productive active timber management and forest carbon management25:30Balance between raising the value and bringing down costs30:10Percentage of these are avoided deforestation projects versus afforestation reforestation projects?34:47Questions of additionality and leakage are inherently financial36:08Carbon credits today37:32Applications of tools in Renoster’s work?39:04Project developers or buyers?39:28 Future of carbon markets43:05 Future of Renoster44:09Actionable adviceSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Today, I’m joined by Craig MacKenzie, Senior Lecturer in Nature Finance at the University of Edinburgh Business School. Over Craig’s career, he has worked in asset management and transitioned to academia. He also advises several public bodies on land use change. From this vantage point, Craig shares his insights on the opportunities and challenges for scaling UK Carbon Forestry, where a significant roadblock is attracting institutional investors. We talk about the massive reduction in forest cover that has taken place in the UK over the centuries, and how the UK’s commitment to net zero is starting to reverse this trend. Despite the primarily well-received Woodland Carbon Code (WCC) and other favourable policies, the economics still don’t stack up to meet investors’ return requirements when compared to the risks associated with carbon credit price volatility and the long horizons for generating credits in the UK. But things are changing. Tune in to find out what’s in the pipeline for the sector that may make UK carbon forestry much more attractive to institutional investors, and support turning the UK’s net-zero ambitions into reality.QuoteThe biggest challenge for investors in the UK, in particular, is finding the bandwidth to do the due diligence on the UK kind of situation. So, the actionable advice is, can we find ways to pool the research question so that it isn't every single pension fund having to repeat the same amount of work, the same body of work?Can we create a data room for UK carbon forestry for our big pension funds, so that we can make it easy for the due diligence to happen?I'm quite excited about the potential for UK carbon forestry to move from being uninvestable to being attractive. But it would be tragic if we do that, but then nobody turns up because they just haven't been able to do the work.Useful resourcesCraig Mackenzie on LinkedInRoyal Society for the Protection of Birds (RSPB)UK Woodland Carbon CodeScottish Land CommissionUniversity of Edinburgh Business SchoolPeatlandBeach tree (Fagus sylvatica)Time stamps01:26Craig’s background03:13What encompasses UK carbon forestry 06:38Woodland carbon code07:43UK forest cover10:57Opportunities to diversify/overlap land use (mostly segregated)14:33Invest in UK carbon forestry18:34Benefits/subsidies21:01Capital providers26:08Changes needed to attract more institutional private funding/investment32:51Carbon credits insurance products34:23Woodland Code UK – insurance35:56Biodiversity net gain legislation41:17Actionable advise42:57Contact detailsSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Today, I speak with Jessica Smith, Head of Nature at UNEP Finance Initiative, about the growing private sector interest in nature finance. She highlights the need for a common taxonomy to reduce investment hesitancy and notes that timberland remains a key nature-positive option for institutional investors. We explore the investment gap between the Global North and South, strategies for stakeholder engagement in areas with unclear tenure rights, and how to phase capital across a project’s life cycle. Jessica concludes with a strong call to eliminate deforestation from investment portfolios.Important links:Finance for Nature Positive paperPRB Sector guidance for forestry, agriculture, and miningShort article on this guidanceFinance roadmapCali Card ReportManaging biodiversity risk exposure? Do investors care about biodiversity? UNEP Finance InitiativeJessica Smith on LinkedInFavorite tree: EucalyptusProduction teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesDetails01:04Jessica’s background and work03:04Key lessons for nature from global events05:18Finance for nature positive09:04Principles for responsible banking specter action guidance for agricultural, forestry, mining sectors11:12How to  get private investment in nature-based assets15:31Strategies to be nature positive in timber-focus investment21:54What should asset managers look out for? Red flags27:44Importance of data collection32:34Blended finance36:12Attract impact capital & investors as ecosystems in themselves38:53Nature on climate COP agenda 2025 – eliminate deforestation, invest in nature positive solution40:20Actionable adviceSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Today I’m joined by Paul Brannen, Director of Public Affairs at the European Confederation of Woodworking Industries & The European Organisation of Sawmill Industry AND author of a recent book, Timber! How wood can save the world from climate breakdown. In our conversation, Paul digs into the details surrounding the climate benefit of building with wood. We compare the carbon footprints of wood, concrete and steel (did you know that concrete is responsible for 8% of global emissions)! We talk about the cost savings of using wood in the built environment. We explain that despite the financial and climate merits, and supportive regulatory environment – the building sector still suffers from convention and doing things the way they’ve always been done. We discuss the importance of circularity in using wood in construction, and finally – how investors can support the whole value chain for enhanced climate and financial benefit.QuoteAnd the interesting emerging area here for the investor is, while there have been some carbon credit available for a considerable time in relation to carbon stored in the forest, generated by new planting, there will also be carbon credits come in, which will go with the carbon stored in the build environments, the the continuation of the storage from the forests into the build environment.Important linksPaul Brannen on LinkedInBook: Timber! How wood can save the world from climate breakdownThe European Confederation of Woodworking Industries (CEI-BOIS)Favorite tree: Sitka Spruce (Picea sitchensis)Production teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesDetails:02:06Paul’s background05:38The reason behind writing the book 09:39Development of using wood/timber in building homes and construction of bigger buildings16:12Roadblocks to progress21:11Comparison between wood/timber, concrete, and steel re. durability23:44Evidence about carbon footprint between wood vs concrete vs steel30:42Is there a case when wood is not the most sustainable option?37:34Case for sustainable forest management43:53How can we communicate the importance of investing in sustainable forest production 50:56A possibly circular process56:46Actionable advice57:06Contact detailsSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Today I’m joined by Eugene Kraamwinkel, CEO of two agribusinesses in Cambodia – Phu Rieng Kratie Ampivath and Dau Tu Saigon Binh Phuoc. In our conversation, Eugene highlights the importance of having a strong Code of Conduct to ensure a long-term sustainable forest business, especially in emerging markets and industries such as forestry and agriculture. We discuss how investors can evaluate business integrity risks and red flags to watch for. Eugene shares a roadmap on how forest business owners can make stepwise improvements toward changing the culture around moral conduct. Eugene also emphasizes that ethical business is not just about committing to transparency and anti-corruption but also about environmental and social ethics.QuoteIt is a long-term investment, and it is going to give you sustainability, and it won’t be sustainable if you want to do it over a short-term period. While forestry investments can be profitable it requires patience, deep commitment to responsible management, and investors need to prioritize opportunities that will align with strong environmental, social, and governance principles to ensure business operates transparently, ethically, and sustainably. Important linksLinkedIn: Eugene KraamwinkelFavorite tree: South African yellowwood (Podocarpus latifolius)Production teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesDetails02:32Eugene’s background & drive for ethical business practices4:59Why is business integrity important in forestry and agribusiness?07:57Make investors more confident in emerging markets with ethical business conduct risk11:44 Examples of government initiatives to bring about change15:11Starting point for ethical business conduct20:14How can investors be confident that code of conduct will ensure ethical operations in practice25:47Example of shift in from unethical to ethical27:25Red flags for investorsLink between ethics and climate change and sustainability impact33:44Actionable adviceSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud

Today, I’m joined by Jamie Lawrence, Co-Founder of Xilva. In this conversation, Jamie describes the project evaluation process taken by Xilva, which evaluates nature-based solutions projects for numerous capital providers, from investors to corporates and donors. Jamie describes the six categories of Xilva’s Due Diligence Framework and explains the reasoning for interconnecting these in an assessment. After evaluating more than 300 projects, he explains the three common mistakes project developers make when preparing for funding. He also stresses the merits of the promising projects that cross the Xilva desk. We talk more about the importance of a good strategy on the side of the capital provider to prevent a project from stalling due to misalignment in internal processes.QuoteAssets like forestry are perhaps one of society’s most undervalued assets. We will value those forests for specific assets like timber when they are providing so much more. They could be in a water catchment area, they provide the very air that we breathe, biodiversity, culture, it is a given. Important linksXilvaXilva on LinkedInJamie Lawrence in LinkedInFavourite tree: Cork tree (Quercus suber)Production teamHost: Shauna Matkovich - The ForestLinkProducer and editor: Magdalena Laas - Unscripted CreativesDetails01:13 Background of Xilva & Jamie03:19Silva;s services in nature-based solutions space05:09Profiles of clients - capital providers06:49How do you find projects?08:06Screening strategy for projects10:27Due diligence to support clients  - six categories of framework16:24Clients bring own criteria17:50External collaborations or expertise, leverage global assets20:44Types of projects21:52What makes a strong project - and which issues exist in practice/ignored factors24:50Communication on the ground, challenges, & risk management30:11Strengths in projects, makes projects shine32:27Reasons for projects getting stuck37:14Effect of voluntary and carbon markets on supply and demand of nature-based  solutions. Difference in perceptions in different markets (Global North/Global South)41:59Next for Silva44:43Actionable advice47:08Contact detailsSound libraryNature by MaxKoMusic/SoundcloudSopwell Woodlands and Scohaboy Bog SAC, Cloughjordan, Co Tipperary, IRELAND by wild_rumpus/Soundcloud