What is forestry green finance?


Green development, as the expansion of forestry and the incorporation of urban ecosystems, requires financial support to achieve the long-term development. Therefore, the combination of finance and green development (i.e. forestry green finance) is critical during this era where climate change and global warming are directly threating the life of all species on the planet.

Sustainable forestry is a key part of forestry green finance. Investors in forestry green finance are looking at long-term return through sustainable development. As a carbon pool, forestry provides carbon sequestration while timbers harvested from forests can be used in different industries; thus, brings huge business opportunities.

Green finance has been going on for a while in US. Many of the natural conservation projects in the States were associated with green finance. In German, Australia and New Zealand, investment companies and capital management companies are also working with green finance organizations to promote environmental protection.

With the previous successful examples, China could also adopt green finance to accompany the development of carbon market. However, even with successful instances, China should still watch out for the potential risks and should figure out its own way to deploy relevant financial products and marketing tools.