Temasek’s GenZero investment brings US timberland manager’s Latin American reforestation strategy to US$672 million
The strategy focuses on restoring biodiversity and climate resilience in critical ecosystems in Latin America
[SINGAPORE] Temasek-owned GenZero made an investment in US timberland manager BTG Pactual Timberland Investment Group (TIG)’s Latin American reforestation strategy, which has raised the total capital mobilised for it to US$672 million.
The BTG Pactual TIG reforestation strategy aims to mobilise US$1 billion to conserve, restore and reforest around 270,000 hectares (ha) of degraded landscapes in Latin America, according to a Tuesday (Oct 28) media release from BTG Pactual TIG, Conservation International and GenZero.
In particular, the strategy focuses on restoring biodiversity and climate resilience in critical ecosystems in Latin America, which include Brazil’s Cerrado biome – one of the most biodiverse seasonally dry ecosystems in the world. About half of Cerrado has already been converted to other uses such as degraded pastureland.
It includes what may be the largest restoration experiment to ever be conducted in the Cerrado, the parties noted, through a long-term research partnership between BTG Pactual TIG, Conservation International and the Federal University of Vicosa.
“This collaboration will test the effectiveness of different restoration methods, such as direct seeding, native seedling planting, and natural regeneration techniques, and should provide valuable data to guide future forest restoration efforts both within Brazil and globally,” the parties said.
Protect and restore
To date, restoration is underway across more than 11,000 ha of native and biodiverse Cerrado vegetation. This is expected to create more than 40,000 ha of connected habitat for local biodiversity.
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The reforestation strategy at full scale is expected to protect and restore about 135,000 ha of native forests and other habitats, while planting millions of trees across around 135,000 additional ha as sustainably managed commercial tree farms. These are certified to Forest Stewardship Council standards.
The move is expected to support about 2,700 full-time jobs once fully deployed, substantially increasing employment compared with traditional land uses, such as cattle ranching.
Hoon Ling Min, director of investments at GenZero, said: “This initiative supports the transition to a net-zero world and builds long-term resilience for local communities, by restoring natural ecosystems and enhancing biodiversity, whilst sustainably producing timber and generating high-integrity carbon credits.”
Conservation International is the impact adviser to this strategy. It will help BTG Pactual TIG achieve positive environmental, climate and social impact related to the conservation and restoration aspects of the initiative.
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