The Scottish National Investment Bank, created by the SNP Government last November has committed £50 million to the creation of a new woodland and forestry management fund. This funding will enable the planting of enough trees to capture 1.2 million tonnes of carbon dioxide emissions over the next 20 years.
It will also generate stable returns through the sale of timber.
All areas harvested will subsequently be replanted, while the timber products generated will enable the provision of raw materials for more sustainable packaging and building materials.
Eilidh Mactaggart, Chief Executive of the Scottish National Investment Bank, said:
“The new planting element and ability to generate carbon credits represents a novel investment proposition which mainstream investors have yet to fully embrace.
“The bank’s cornerstone investment is designed to encourage other investors to follow us into this new type of forestry fund. We therefore believe this will lead the way on innovative mission-aligned investments."
Kenneth Gibson MSP commented:
“This significant investment shows the positive impact Scotland’s new National Investment Bank can have.
“Beside aiming to reduce our daily carbon footprint, planting trees across Scotland is one of the best ways of taking CO2 out of the atmosphere to tackle the climate crisis. “
As trees grow, they absorb and store the carbon dioxide emissions that are driving global heating. New research estimates that a worldwide planting programme could remove two-thirds of all the emissions from human activities that remain in the atmosphere today.”