Natural Capital

With a string of big deals in Australia and elsewhere, Canadian investors continued to flex their muscles and demonstrate their commitment to the asset class in 2023.

Trade of carbon credits between countries remains out of reach as agreement could not be found on the all-important Article 6 that was introduced in 2015 at COP21, Paris.

TPG made its presence felt in 2022 with head-turning forestry deals and awards wins – and it has now been named by the UAE as one of three ‘launch partners’ for its $30bn climate investment vehicle.

The French firm’s latest land restoration strategy will invest in sustainable forestry and regenerative agriculture projects in developing countries.

A large-scale portfolio previously belonging to the Hui family adds weight to New Forests’ recently established agriculture division.

Gunn Agri Partners’ Wilga Farming platform, backed by CDPQ and the CEFC, has also made its first two investments since launching with a seed asset in June 2023.

Tilhill and Goldcrest Land & Forestry Group’s annual report also finds land listings for natural capital were valued at £276m, which represents a 241% rise on 2021-22.

Strategies seeking investments in themes like nature-based solutions, biodiversity and natural resources – or natural capital – have begun to sprout in various infrastructure asset managers’ mandates.

New Forests will sell forestry estates in New Zealand with potential for carbon markets investors, as ANZFF2 approaches the end of its life.

Managing director Olly Hughes says LPs are generally still in the early stages of their sustainability journeys and very wary of committing too far in any one direction.