Clean Energy Finance Corporation has invested $75 million in the forestry sector via specialist fund manager New Forests, targeting carbon abatement of one million tonnes over the next decade.
The investment will support the development of new plantations, and the conversion of existing hardwood plantations to softwood plantations, where the longer rotation periods have higher carbon abatement potential.
The underlying plantations will have the potential to generate additional revenue through Australian Credit Carbon Units.
Through the Australia New Zealand Landscapes and Forestry Fund, CEFC’s commitment joins the first $450 million close from Australian and European investors such as Swedish pension fund AP2 and German pension group BVK.
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