Stafford Capital Partners has invested $70m (鈧�64m) to acquire the first assets for its debut carbon-offset timberland fund.
The manager鈥檚 UK local government pension schemes-backed Stafford Carbon Offsets Opportunities Fund has invested $60m to acquire degraded pastureland in south-western Brazil and made a $12m investment in three properties totalling 1,914ha in New Zealand.
In Brazil, the plan is to cultivate commercial timber plantations on half of the land, while preserving the other half through forest restoration. New Zealand鈥檚 land is primarily suited for grazing or forestry, Stafford said, adding that it will plant 1,356ha with radiata pine and manage the remaining area for conservation.
Stafford Capital鈥檚 CEO Angus Whiteley, said: 鈥淚nstitutional investors鈥� appetite for investible climate solutions is only growing in the context of the race to net zero. The carbon-sequestering properties of timber, the world鈥檚 only climate-friendly building product, are compelling.
鈥淭hose deploying capital into timber will enjoy a first-mover advantage as net-zero deadlines loom and supply constraints of high-quality carbon removals and sustainable timber products start to have an impact.鈥�
Last year, 91传媒在线 reported that two local government pension schemes (LGPS) had backed Stafford Capital鈥檚 debut carbon-offset timberland fund, a vehicle anchored by LGPS peer Essex Pension Fund.
At the time, Stafford Capital said the capital commitments from Leicestershire and the City and County of Swansea, together with Essex Pension鈥檚 拢100m (鈧�113m) investment in late 2022, gave the Stafford Carbon Offsets Opportunity Fund a $242m first close.
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