ImpactAlpha, August 26 — Investors are starting to stockpile carbon as prices per ton curve upward (see, “Forget crypto: Here’s how to play the rising price of carbon”).
U.K.-based Gresham believes there’s an opportunity for forestry investors to benefit, as carbon emitters purchase offsets and the construction and housing industries drive demand for sustainable timber.
The Forest Growth & Sustainability fund will invest in existing forestry assets and new woodlands in the U.K. that have potential to generate carbon credits.
The fund will generate returns for investors from verified carbon credits, allowing investors “to choose to use the carbon credits generated for offsetting purposes or sell the units to generate income,” said Gresham’s Olly Hughes.
The fund raised £127 million ($174.5 million), exceeding its initial target of £100 million ($137.4 million). Gresham House will continue to raise capital toward a final close.